VIRGINIA BEACH, Virginia, Oct. 23, 2019 (GLOBE NEWSWIRE) -- Franchise Group, Inc. (OTC PINK: FRGA) announced the completion of its previously announced acquisition from Sears Hometown and Outlet Stores, Inc. (NASDAQ: SHOS) of the Sears Outlet business and Buddy’s Home Furnishing stores of Sears Hometown. This transaction continues the strategic transformation of Franchise Group, including building a franchising platform that is intended to complement and diversify Franchise Group’s current businesses and operations.
The Sears Outlet business is designed to provide customers with in-store and online access to new, one-of-a kind, out-of-carton, discontinued, reconditioned, overstocked, and scratched and dented products across a broad assortment of merchandise categories, including home appliances, lawn and garden equipment, apparel, mattresses, sporting goods and tools, at prices that are significantly lower than list prices. The unique portfolio of the Sears Outlet business retail stores and its distribution capabilities adds complementary products and sales channels that will enable the Company to offer high-quality home goods to consumers across the nation, while also offering unique value propositions. With the addition of the Sears Outlet business, the Company’s store portfolio now includes over four hundred retail locations across its various brands and platforms, with a combination of Company operated and franchisee operated stores.
The acquisition of the Sears Outlet business is an important step forward in the evolution of Franchise Group’s strategic objectives, as it follows the July 2019 acquisition of Buddy’s Home Furnishings.
Andrew Laurence, the Company’s Executive Vice President and Chairman of Franchise Group’s Board of Directors, said, “We welcome the Sears Outlet management team and its employees to Franchise Group. We believe the Sears Outlet team will be a great addition to our company and will assist us in achieving our long-term strategy. This acquisition demonstrates our ability to enhance our portfolio of operating businesses and brands at attractive valuations.”
In connection with and immediately following the closing of the acquisition of the Sears Outlet business, and as previously announced, A-Team Leasing became a franchisee of 5 Sears Outlet business locations and an existing franchisee of Buddy’s Home Furnishings acquired the 9 Buddy’s Home Furnishing locations that were acquired together with the Sears Outlet business from Sears Hometown.
About Franchise Group, Inc.
Franchise Group, Inc. (OTC PINK: FRGA) is an operator and acquiror of franchised and franchisable businesses that it can scale using its operating expertise. Franchise Group owns and operates Liberty Tax Service, Buddy’s Home Furnishings and the Sears Outlet business. Additionally, the Company announced in August 2019 the proposed acquisition of The Vitamin Shoppe, Inc. by the Company, which is expected to close prior to the end of calendar 2019. Liberty Tax Service operates in the U.S. and Canada and prepared approximately two million individual income tax returns in more than 3,100 offices and online last year. Buddy’s Home Furnishings is a specialty retailer engaged in the business of leasing and selling consumer electronics, residential furniture, appliances and household accessories.
