Latest news with #FranchiseGroup
Yahoo
23-05-2025
- Business
- Yahoo
Former Vitamin Shoppe CEO returns to top spot
This story was originally published on Retail Dive. To receive daily news and insights, subscribe to our free daily Retail Dive newsletter. After a two-year absence, Sharon Leite has returned to The Vitamin Shoppe as its CEO, according to a company news release. Leite was CEO of the brand from 2018 to 2023. The executive reports to the company's board of directors. Leite's appointment came as Kingswood Capital Management and Performance Investment Partners officially closed on their previously announced deal to acquire The Vitamin Shoppe from Franchise Group for just under $195 million. Leite had a working relationship with Kingswood prior to the announced acquisition of The Vitamin Shoppe. She worked for Alex Smith — a Kingswood operating partner and executive chairman of the Kingswood portfolio company World Market — as his head of stores at Pier 1 Imports. Smith later hired Leite to be CEO at The Vitamin Shoppe during his time as chairman of The Vitamin Shoppe from 2017 to 2019, according to a Kingswood spokesperson. "After an incredibly rewarding and successful four and a half years in the business, I am thrilled to return to The Vitamin Shoppe," Leite said in a statement. "With the invaluable support of our partners at Kingswood and PIP — leaders in building brands and driving growth in omnichannel retail — we are primed for an exciting new era of expansion. I look forward to collaborating with the board, management team, vendor partners, and our dedicated health enthusiasts as we build a world-class health and wellness platform that delivers an unparalleled experience to our customers." The Vitamin Shoppe's previous parent company, Franchise Group, filed for Chapter 11 bankruptcy last November, citing debt of about $2 billion. The retailer has been working to enhance its brick-and-mortar offering. In March, The Vitamin Shoppe launched a shop-in-shop concept called Hometown Stores, which features about 200 square feet of space in select stores devoted solely to prominent wholesale brands that have headquarters or a strong presence in the same area as the location. Looking ahead, Kingswood partner Michael Niegsch and PIP partner Mark Genender said the company will invest 'in a variety of brand-building strategies, including further supporting the health enthusiasts in running great stores, enhancing the company's digital marketing and e-commerce capabilities, innovating the private brand portfolio, and working with existing and emerging third-party brands to be the best distribution partner in the market.' Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Daily Mail
23-04-2025
- Business
- Daily Mail
Retail group in bankruptcy crisis ditches strongest brand to stay afloat
A major retail group will sell its strongest brand as it struggles through the bankruptcy process. The Franchise Group, which owns businesses such as Pet Supplies Plus, Badcock Home Furniture and Buddy's Home Furnishings, is set to sell its prized possession - The Vitamin Shoppe. The franchise filed for Chapter 11 bankruptcy protection in November last year as it faltered under $2 billion in debt. At the time of filing, Franchise said bankruptcy was necessary to protect its best performing brands. But less than six months later the company has etched out a deal to sell The Vitamin Shoppe. The group's best known brand will be sold off to private equity firms Kingswood Capital Management and Performance Investment Partners for $193.5 million. Next month the company will seek approval from a judge for its reorganization plan, which includes the sale. The Vitamin Shoppe, which sells a range of health and beauty products, has 650 stores across the country. The 50-year-old brand has remained successful despite the woes of its parent company, and announced expansion plans as recently as 2023. 'We are excited to partner with The Vitamin Shoppe team and help them build upon the success the business has enjoyed over the last forty-eight years,' Kingswood Partner Michael Niegsch and Performance Investment Partners Mark Genender said. The Vitamin Shoppe has invested in its brick-and-mortar stores in recent years, including launching its store-within-a-store concept which features wellness goods from local sellers. The company also launched a telehealth service called Whole Health Rx last May. The wellness economy was valued at $6.3 trillion in 2023, and could even reach $9 trillion by 2028, according to The Global Wellness Institute. The Franchise Group is just one of many companies which have filed for bankruptcy in recent years - including popular restaurant chains and healthcare companies. As part of Franchise's restructuring, the company called time on its American Freight furniture chain and closed all 357 of its locations. The chain, which counts Wayfair and Big Lots as rivals, sold beds, mattresses, sofas, fridges, ovens, ranges and dishwashers. Franchise Group blamed the bankruptcy on a post-pandemic sales slump as stimulus funds dried up and inflation-weary consumers cut back on spending. The business also suffered in the wake of a federal probe into its CEO Brian Kahn. Kahn was investigated for his dealings with the firm that had taken Franchise Group private in August 2023. Franchise Group claimed in its filings that the situation had scared off possible partners that might have helped with a rescue deal. Franchise Group's 'operating businesses, and primarily American Freight, continued to encounter headwinds driven by the macro-economic and other factors,' David Orlofsky, Franchise Group's chief restructuring officer, said at the time. 'Together with the allegations against Mr. Kahn, adversely impacted Franchise Group's ability to sell or otherwise monetize any of its other businesses,' he explained. Other traditional health giants have failed to compete with the rise of medical breakthroughs such as Ozempic and Wegovy. WeightWatchers has plans to file for bankruptcy in the coming months as it struggles under the weight of $1.6 billion in debt. Many of its former customers are turning to a new generation of weight-loss drugs that help them shed pounds with far less effort.
Business Mayor
21-04-2025
- Business
- Business Mayor
The Vitamin Shoppe to be sold to private equity for nearly $195M
Listen to the article 2 min This audio is auto-generated. Please let us know if you have feedback. Private equity firms Kingswood Capital Management and Performance Investment Partners on Wednesday announced they've agreed to acquire The Vitamin Shoppe from Franchise Group. Franchise Group, which filed for Chapter 11 bankruptcy in November, is selling the Vitamin Shoppe for $193.5 million, Kingswood Capital Management confirmed to Retail Dive. The deal is expected to close on or shortly after the agreement close date of May 15, as the 'judge should rule on the sale order before then,' per a company spokesperson. When Franchise Group filed for bankruptcy in November the company's CEO said the move was necessary in order for it to fortify its strongest brands, including The Vitamin Shoppe, Pet Supplies Plus and Buddy's Home Furnishings. But less than six months later, the company has inked a deal to offload The Vitamin Shoppe. The acquisition helps build out Kingswood Capital's portfolio, which also includes Cost Plus World Market, outdoor retailer Mountain Equipment Company and fragrance retailer Obsession Holdings . 'We are excited to partner with The Vitamin Shoppe team and help them build upon the success the business has enjoyed over the last forty-eight years,' Michael Niegsch, a Kingswood partner, and Mark Genender, a partner with Performance Investment Partners, said in a joint statement. 'We plan to make significant investments in the company's third-party brand relationships, research and development across The Vitamin Shoppe's owned proprietary brand portfolio, upgrades to the store fleet, and improvements to the omni-channel digital platform to deliver the best possible experience to customers.' The Vitamin Shoppe itself has been making investments in its brick-and-mortar fleet. The retailer last month debuted a shop-in-shop Hometown Stores concept, which dedicates at least 200 square feet of space at each designated location to showcase brands, including Gorilla Mind, Bucked Up, RYSE, EHPlabs and Raw Nutrition.
Yahoo
20-02-2025
- Business
- Yahoo
American Freight laying off 19 top execs as it closes its business
Appliance and furniture chain American Freight said it will lay off 19 executives from its corporate headquarters in Delaware, Ohio, by May 1. The permanent layoffs are due to the company's 'poor financial performance,' according to a state Worker Adjustment and Retraining Notification Act notice. The executive positions include multiple accountants and payroll employees, the vice president of distribution and logistics, the director of financial reporting and inventory, and the chief stores officer, chief people officer and chief financial officer. It is at least the third round of layoffs at American Freight since its parent company, Franchise Group Inc., filed for Chapter 11 bankruptcy protection in November, according to a news Freight, founded in Lima, Ohio, in 1994, expanded to as many as 370 stores across 41 states at one time, offering discounted furniture, appliances and mattresses. The company had more than 1,600 employees. According to Franchise Group's bankruptcy filing, it has closed all its American Freight stores across the country. Franchise Group acquired American Freight for $450 million in February 2020. Franchise Group is a holding company that is also based in Delaware, Ohio. The firm owns retailers Pet Supplies Plus, The Vitamin Shoppe and Buddy's Home post American Freight laying off 19 top execs as it closes its business appeared first on FreightWaves. Sign in to access your portfolio
