American Freight laying off 19 top execs as it closes its business

Ohio-based furniture retailer shuttering 341 locations nationwide

Discount retailer American Freight, founded in Lima, Ohio, in 1994, had 370 stores and more than 1,600 employees. (Photo: Jim Allen/FreightWaves)

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 release.

American 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 Furnishings. 

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Noi Mahoney

Noi Mahoney is a Texas-based journalist who covers cross-border trade, logistics and supply chains for FreightWaves. He graduated from the University of Texas at Austin with a degree in English in 1998. Mahoney has more than 20 years experience as a journalist, working for newspapers in Maryland and Texas. Contact nmahoney@freightwaves.com