B. Riley-Backed Franchise Group Prepares to File for Bankruptcy

Franchise Group Inc., the owner of brands including The Vitamin Shoppe and Pet Supplies Plus, is preparing to file for bankruptcy as soon as this weekend following months of losses and turmoil surrounding its founder and a major backer, according to people with knowledge of the plans.

The company, also known as FRG, will seek Chapter 11 protection with a plan in place for senior lenders including HPS Investment Partners to take control of the firm, said the people, who asked not to be identified discussing private preparations.

FRG’s troubles have been at the center of turmoil surrounding major ...