Paul Hastings Advises Ad Hoc Group of First Lien Lenders in Franchise Group Chapter 11 Bankruptcy Exit

Paul Hastings LLP advised an ad hoc group of lenders in the Chapter 11 case for Franchise Group, Inc, the owner of retail brands including Vitamin Shoppe and Pet Supplies Plus, which emerged from bankruptcy on June 6, 2025. The group held approximately $1 billion of first lien loans and $280 million of debtor-in-possession loans provided to finance the bankruptcy. Under the confirmed Chapter 11 plan, Franchise Group restructured more than $2.4 billion in liabilities and the ad hoc group members became holders of more than 90% of the post-bankruptcy new debt and equity. 

Financial Restructuring co-chair Jayme Goldstein led the team, which also included partners Dan Fliman, Jeremy Evans, Nicholas Bassett, Matthew Schwartz, James Longhofer, Mike Zuppone and Jason Ertel; of counsel Isaac Sasson, Joanne Lau and Gary Silber; and associates Miguel Cadavid, Leonie Koch, Tess Sadler, Ariel Guerrero-Stewart, Christina Ta, Kristin Catalano, Eden Lichaw, Kenneth Bagdasar and Marcella Leonard.

More details on the transaction can be found here.

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