Franchise Group to Sell Vitamin Shoppe Chain for $193.5 Million

Bankrupt brand manager Franchise Group Inc. has agreed to sell its health supplements chain, the Vitamin Shoppe, for $193.5 million.

In court documents filed as part of the Franchise Group’s bankruptcy, the buyer is listed simply as TVS Buyer. Affiliates of Los Angeles-based private equity firm Kingswood Capital Management are named as equity investors.

The chain of about 700 stores is among the most valuable brands FRG owns, although the sale won’t bring in enough cash to repay creditors owed nearly $2 billion.

The sale must still be approved by US Bankruptcy Judge Laurie Silverstein, who is overseeing ...