DELAWARE, Ohio, June 21, 2022 (GLOBE NEWSWIRE) — Franchise Group, Inc. (FRG) (“Franchise Group”, “FRG” or the “Company”) today announced that it has completed the sale and leaseback of the three Centers from WS Badcock Corporation (“Badcock”) for gross proceeds of approximately $150 million to affiliates of Oak Street Real Estate Capital, a division of Blue Owl Capital (“Oak Street”).
“Oak Street has proven to be a trusted partner throughout our sale-leaseback process,” said Brian Kahn, President and CEO of Franchise Group. “We are pleased to complete the sale of Badcock’s distribution centers and withdraw the balance of our acquisition term loan with cash proceeds.”
FRG expects to complete the sale-leaseback of the corporate headquarters by the end of the second quarter.
B. Riley Real Estate acted as counsel and Willkie Farr & Gallagher LLP acted as legal counsel to Franchise Group.
About Franchise Group, Inc.
Franchise Group is an owner and operator of franchise and franchiseable businesses that continually seeks to grow its brand portfolio while utilizing its operating and capital allocation philosophy to generate strong cash flow for its shareholders. Franchise Group businesses include Pet Supplies Plus, American Freight, The Vitamin Shoppe, Badcock Home Furniture and More, Buddy’s Home Furnishings and Sylvan Learning. On a combined basis, Franchise Group currently operates over 3,000 locations primarily in the United States that are either company-managed or operated under franchise and licensee agreements.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, projections, predictions, expectations or beliefs regarding future events or results. and are not statements of historical fact. . These forward-looking statements are based on various assumptions at the time they are made, and are inherently subject to known and unknown risks, uncertainties and other factors that may cause actual results, including the sale or value received of additional Badcock real estate . , pending landlord-tenant relationships or litigation, or the amount of debt the Company will repay, performance or achievements will be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are often accompanied by words that convey projected future events or results such as “expect”, “believe”, “estimate”, “plan”, “project”, “anticipate”, “have the intention of”, “will”, “may”, “view”, “opportunity”, “potential” or words of similar meaning or other statements concerning the opinions or judgment of the Company or its management on events future. Although the Company believes that its expectations with respect to forward-looking statements are based on reasonable assumptions within the limits of its current knowledge of its business and operations, there can be no assurance that the actual results, performance or achievements of the Company will not differ materially from any projected future results, performance or achievements expressed or implied by such forward-looking statements. Actual future results, performance or achievements may differ materially from historical or anticipated results depending on a variety of factors, many of which are beyond the control of the Company. We refer you to the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s Annual Report on Form 10-K for the period ended December 25, 2021, as well than the comparable sections of the company’s quarterly report. Reports on Form 10-Q and other filings, which have been filed with the SEC and are available on the SEC’s website at www.sec.gov. All forward-looking statements made in this press release are expressly qualified by the cautionary statements contained or referred to herein. Actual results or anticipated developments may not be realized or, even if substantially realized, they may not have the consequences or the anticipated effects on the Company or its business or operations. Readers are cautioned not to rely on any forward-looking statements contained in this press release. Forward-looking statements speak only as of the date on which they are made, and the Company undertakes no obligation to update, revise or clarify these forward-looking statements, whether as a result of new information, future events or otherwise.
INVESTOR RELATIONS CONTACT:
Andrew F. Kaminsky
Executive Vice President and Administrative Director
Franchise Group, Inc.
[email protected](914) 939-5161