Franchise Group is purchasing Delaware, Ohio, based American Freight Furniture & Mattress for $450 million in an all cash deal reported by Furniture Today recently. The sale is expected to close in the first quarter of 2020.
A member of the corporate staff has verified that plans are for the corporate office to remain at 680 Sunbury Road on Delaware’s east side. No changes would be expected at the Columbus Pike store.
The purchase has been made with the intent to franchise operations of American Freight. Franchise Group was known as Liberty Tax before acquiring the rent-to-own portion of Buddy’s. In August, the group also purchased the remaining portion of Buddy’s and the Sears Outlet business model.
“American Freight is a deep-value, category-defining furniture retail model with a compelling, proven track record of growth and stability throughout economic cycles,” Brian Kahn, president and CEO of Franchise Group, said in a release.
“American Freight is a deep-value, category-defining furniture retail model with a compelling, proven track record of growth and stability throughout economic cycles,”Brian Kahn, president and CEO of Franchise Group
“American Freight’s unmatched cash-on-cash unit economics make it an attractive opportunity for franchisees to benefit from a clear white space growth opportunity. We expect that combining American Freight with our similarly large-format Sears Outlet business and our small-format Buddy’s Home Furnishings business will generate significant economic synergies over time that will be realized from leveraging corporate overhead, vendor and franchisee partnerships, operating methods and a common customer base.”
The intent is to blend the American Freight and Sears Outlet business models together — utilizing Sears Outlet deep work in appliances and American Freight’s work in other parts of the furniture basis. So this would be the change that might happen in Delaware with the addition of appliances to the product offering. Which would be a welcome addition with the limited number of appliance options in Delaware at the present time.
Toby Boyce is the president and Broker for C.G. Boyce Real Estate Co. Toby was honored in 2015 for as one of the first 300 REALTORS in the nation (only 1.4 million) to earn the “Commitment 2 Excellence” Award from the National Association of REALTORS. He has earned several real estate designations that benefit his clients every single day.