Franchise Group to repay $400 million of debt via asset proceeds

By Wendy Van Sickle

Columbus, Ohio, Dec. 20 – Franchise Group Inc. plans to repay $400 million of debt with proceeds from the sale of its consumer credit accounts receivable portfolio by its recently acquired subsidiary W.S. Badcock Corp. to a subsidiary of B. Riley Financial, Inc., according to a news release.

“The sale of non-core assets and subsequent repayment of debt are consistent with our commitment to a conservative financial policy as we continue to identify the highest and best uses of the company’s capital,” Brian Kahn, chief executive officer of Franchise, said in the release. “The evaluation of options for the Badcock real estate portfolio is ongoing and we reaffirm our anticipation of completing that sale by the end of the second quarter of fiscal 2022 as well as reducing our net debt to approximately $1.1 billion by the end of 2022.”

Franchise Group is a Virginia Beach, Va.-based owner and operator of franchised and franchisable businesses.

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