Often, when a big-name retail model closes all of its places after a chapter liquidation, that is the top of the corporate, no less than for some time. We have seen large names like Circuit Metropolis and Mattress Bathtub & Past come again as brick-and-mortar chains below new homeowners years later.
We have additionally seen retail names that have been as soon as used for a fleet of standalone shops —like Sharper Picture and Toys R Us — stamped on merchandise or introduced again in a restricted vogue. There’s worth in identify recognition, and it looks as if only a few manufacturers go away ceaselessly.
Comebacks, nevertheless, can differ significantly. Toys R Us has stumbled with numerous fashions and now exists as a store-within-a-store idea at Macy’s. That is not an actual comeback for what was as soon as a nationwide big-box retail chain, but it surely reveals the worth in a well-recognized identify.
“The notion that retail and consumer brands have value separate and apart from the enterprise really started to take hold in the prior economic cycle, in the run-up to the Great Recession,” David Peress, government vice chairman at Hilco Streambank, which makes a speciality of IP gross sales and disposition, instructed RetailDive.
That is no less than partly why American Freight, a furnishings and mattress chain that used to function 328 shops, has been introduced again from the lifeless.
American Freight closed all its shops throughout chapter
American Freight shared its mission assertion on its web site.
“American Freight offers affordable, high-quality furniture, mattresses and appliances through its direct-to-consumer, warehouse-style stores. With more than 5 million satisfied customers, American Freight has a strong legacy of helping customers save money since 1994. American Freight offers exceptional customer service and a one-stop-shop for quality furniture, mattresses and appliances at everyday low prices.”
That is pretty generic, however the identify had some fairness on the time the chain first filed for Chapter 11 chapter and ended up closing all of its doorways.
“Big brands like Toys R Us and Bed, Bath and Beyond are all about the memories. Those brands have an inherent value and with the transaction nature that the economy is turned into where people just point and click and order whatever the cheapest product I think was starting to turn back towards nostalgia,” RTMNexus CEO Dominick Miserandino shared with TheStreet.
That may explain the wild saga of American Freight, which saw it go from Chapter 11 bankruptcy liquidation and a full shutdown to reopening stores in a very quick cycle,.
The company shared its journey in a press release.
“In late 2024, American Freight’s dad or mum firm, FRG, filed for chapter safety and closed all places on or earlier than December 31, 2024. In 2025, AF Newco I, LLC bought the American Freight mental property from FRG together with the shop identify, logos, and sure leases and relaunched American Freight in 29 places. AF Newco I additionally entered right into a Licensing Settlement with a 3rd social gathering which opens an extra 31 licensed operations.”
That is a really fast comeback, but it surely’s not unprecedented, as roughly the identical identical factor occurred with Massive Heaps. That chain closed all of its places below a chapter submitting after which a few of these reopened below a brand new operator.
Additionally Learn: Massive Heaps again from chapter, but it surely’s made some key adjustments
American Freight delivers furnishings.
Picture supply: Shutterstock
An American Freight timeline
- 1994: American Freight was based in Lima, Ohio.
- 2019: Franchise Group acquired the American Freight Group.
- 2020: The Sears Outlet Group was acquired by Franchise Group, and its manufacturers have been merged below the American Freight identify.
- 2020-2024: Franchise Group additionally acquired different corporations, together with FFO Residence in 2020, which was mixed with American Freight.
- 2024: Franchise Group filed for Chapter 11 chapter, resulting in the announcement that every one American Freight shops would shut.
- 2025: AF Newco I, LLC bought the American Freight mental property from FRG together with the shop identify, logos, and sure leases and relaunched American Freight in 29 shops.
- AF Newco I additionally entered right into a Licensing Settlement with a 3rd social gathering, which opens an extra 31 licensed operations.
Supply: American Freight
American Freight makes a comeback
American Freight has come again from the lifeless, albeit with a a lot smaller footprint than it had beforehand.
“Between corporate owned stores and independently owned and operated stores, there are 60 American Freight locations continuing to serve customers today,” the corporate shared.
The chain additionally operates a web site and ships nationally.
“There’s a different ownership structure in place, but our mission isn’t different than what it was. We aim to be the value option for furniture and mattresses,” Jonathan Waters, vice chairman of retailer operations, instructed Furnishings Immediately. “We stock inventory in our stores so customers can take it home today or have quick delivery. We have financing options for every customer, and we’re also adding a 100% approved layaway program.”
Extra Retail Shares:
- Kohl’s takes drastic motion to repair regarding buyer habits
- Costco Drops Lengthy-Time period Coverage On Providing Just one Credit score Choice
- New Goal CEO Making 3 Main Adjustments to Win Again Buyers
Nostalgia and bringing again an outdated identify can solely go to this point. Pop Inventive’s report, The Rise and Fall of Legacy Manufacturers: Why Some Iconic Names Wrestle Whereas Others Thrive, shared some potential pitfalls.
- Some manufacturers consider their identify alone is sufficient to carry them ahead. This mindset typically results in complacency, the place innovation takes a backseat and opponents acquire floor.
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Customers change, and so ought to manufacturers. One of many largest pitfalls of legacy corporations is clinging to previous success reasonably than adapting to shifting demographics and expectations.
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Whereas failing to alter may be damaging, some manufacturers go too far within the different path, shedding their core id in an try to remain related.
Associated: 50-year-old sporting items retail chain closing 100s of shops
