Delaware, Ohio — Transform Holdco LLC is on the list of top unsecured creditors in Franchise Group’s Chapter 11 filing.
Transform Holdco, the company created by Eddie Lampert to house Sears and Kmart, is owed $1,277,151. In 2019, the Sears Hometown and Outlet stores were sold to Franchise Group, and those stores were eventually merged with its American Freight chain of stores. Franchise Group is also the parent of Buddy’s Home Furnishings.
Its top 50 unsecured creditors combined account for at least $64.5 million in debt, although four of the unsecured creditors’ claims are listed as undetermined.
As part of Franchise Group’s restructuring, it announced that it will wind down operations for American Freight with store closing sales beginning Nov. 5. In determining to wind down American Freight, FRG noted that the brand has struggled due to sustained inflation and macroeconomic challenges facing the large durable goods sector.
Nestle Purina Petcare Co. is the top unsecured creditor with $6,531,672, with Hill’s Pet Nutrition next with $5,215,380. Coyote Logistics is third with $4,464,024, followed by Whirlpool’s $3,288,775 claim. Alphia Inc. ($2,151,529) and Uber Freight ($2,005,594) complete the top 10.
