B. Riley-Backed Franchise Group Files for Bankruptcy (2)

Franchise Group Inc., the owner of brands including the Vitamin Shoppe and Pet Supplies Plus, filed for bankruptcy protection after months of losses and turmoil surrounding its backer B. Riley Financial Inc.

The company, also known as FRG, filed under Chapter 11 in Delaware, listing almost $2 billion of debt, according to court documents. Bloomberg News, citing people with knowledge of the matter, reported late Saturday that FRG was preparing to hand control to lenders including HPS Investment Partners after months of negotiations with the group over a restructuring.

FRG said in a statement it has struck a deal ...