Franchise Group to Sell Vitamin Shoppe to Private Equity Firms

Vitamin Shoppe Gets New Owners Amid Franchise Group Bankruptcy

Roughly five months after filing for Chapter 11, Franchise Group is selling Vitamin Shoppe to Kingswood Capital Management and Performance Investment Partners. Bloomberg reports the deal is valued at $193.5 million, although official terms were not disclosed.

Vitamin Shoppe, headquartered in Secaucus, New Jersey, currently operates around 650 stores nationwide. The deal is expected to close in Q2 2025, subject to customary approvals.

Private Equity’s Plans for Growth and Modernization

The new owners plan to invest in a wide range of initiatives, including:

• Upgrading physical stores
• Enhancing the digital platform
• Strengthening proprietary brand research and development
• Expanding third-party brand partnerships

They also intend to leverage Vitamin Shoppe’s loyalty member base and national retail footprint to support emerging wellness brands.

Part of a Bigger PE Retail Trend

The transaction continues a broader wave of private equity activity in the retail space. Recent high-profile deals include:

• Blackstone acquiring Jersey Mike’s
• Roark Capital purchasing Subway
• Sycamore Partners planning a $10B buyout of Walgreens

Private equity firms are increasingly betting on brick-and-mortar chains, combining real estate value with brand loyalty and growth potential.

Franchise Group Restructuring Continues

Franchise Group filed for bankruptcy in November 2024, citing post-pandemic revenue declines and inflationary headwinds. The company has also closed its American Freight chain and continues to streamline operations.

Advisors for the deal include Jefferies, McDermott Will & Emery, Sidley Austin, Ducera Partners, and Kirkland & Ellis.

Source: CoStar

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