Franchise Group, Inc.

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Case overview

Case Number:

1:24-bk-12480

Court:

Delaware

Nature of Suit:

Firms

Companies

Government Agencies

Sectors & Industries:

February 19, 2025
Franchise Group Gets Tentative Deal On Ch. 11 Voting Process

Retail chain operator Franchise Group Inc. and a group of lenders told a Delaware bankruptcy judge on Wednesday they were close to agreeing on a disclosure statement for Franchise Group's Chapter 11 plan that will let the debtor take votes on the proposed debt-for-equity and liquidation deal.
February 18, 2025
Willkie DQ'd, Guo Clawbacks Continue

Franchise Group must find new bankruptcy counsel after a judge in Delaware found Willkie Farr & Gallagher LLP was conflicted in its case. The court-appointed trustee investigating Miles Guo's shell companies got another deadline extension to chase down estate funds. Spirit Airlines is awaiting confirmation of its reorganization plan. And bankrupt bitcoin miner Rhodium Encore has hit back at its landlord in court, alleging a campaign of sabotage.
February 12, 2025
Willkie DQ'd Out Of Franchise Group Ch. 11

A Delaware bankruptcy judge Wednesday denied retail chain operator Franchise Group Inc.'s request to retain Willkie Farr & Gallagher LLP in its Chapter 11, saying issues stemming from a transaction it worked on before the bankruptcy are too central to the company's reorganization plans.
February 07, 2025
Franchise Group Ch. 11 Plan Not 'Fully Baked,' Judge Says

A Delaware bankruptcy judge has declined to approve the disclosure statement for Franchise Group Inc.'s Chapter 11 plan, calling it not "fully baked" and saying the debtor should wait until after the date it is scheduled to sell company assets to solicit votes on its plan.
February 03, 2025
Lenders Want Willkie Out Of Franchise Group Ch. 11

An ad hoc group of lenders in retail chain operator Franchise Group Inc.'s Chapter 11 has objected to the company's request to retain Willkie Farr & Gallagher LLP, arguing the firm cannot represent the debtor and its affiliates due to "red flags" indicating conflict of interest.
January 21, 2025
Judge OKs Deal To Keep Some American Freight Stores Open

A Delaware bankruptcy judge on Tuesday approved a sale in Chapter 11 that will keep the lights on in more than two dozen American Freight home furnishing stores by transferring their leases from the bankrupt Franchise Group.
January 14, 2025
Willkie Shouldn't Rep Franchise Group In Ch. 11, Says Trustee

The Office of the U.S. Trustee has objected to Willkie Farr & Gallagher LLP serving as co-counsel for debtor Franchise Group Inc. in its Chapter 11, saying the firm did prepetition work for Franchise's ex-CEO and affiliates on transactions that led to Franchise being indebted in the first place.
December 17, 2024
Franchise Group Can Keep Exclusive Control Of Its Ch. 11

A Delaware bankruptcy judge on Tuesday denied a motion to end the plan exclusivity window and other bankruptcy rights for debtors in Franchise Group Inc.'s Chapter 11, saying possible intercompany claims don't justify relief that the debtor argued would plunge the case into chaos.
November 21, 2024
Franchise Group Lenders Want End To Debtor's Ch. 11 Rights

Lenders of bankrupt retail-focused holding company Franchise Group Inc., including Pacific Investment Management Co. and private equity firm Irradiant Partners, have urged a Delaware bankruptcy judge to end holdco debtor Chapter 11 exclusivity restrictions, arguing that the move offers the best escape from a near-inescapable "Gordian knot" entangling all their claims.
November 12, 2024
3rd Circ. Weighs Boy Scouts Ch. 11, Calif. AG Balks At Fee Bid

The Third Circuit heard arguments on Boy Scouts of America's Chapter 11 plan from sexual abuse survivors as well as insurers, California's attorney general disputed Sullivan & Cromwell's fee requests in Kidde-Fenwal Inc.'s bankruptcy, and the U.S. trustee is seeking documents from Jackson Walker LLP regarding a former attorney's secret relationship with a bankruptcy judge. This is the week in bankruptcy.