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merican Freight is closing over 300 home goods stores across the US, including 25 in California, due to high mortgage rates and a decline in home buying and remodeling. The Ohio-based discount retailer will shutter 328 furniture, appliance, and mattress stores by year's end, following similar closures by Big Lots and 99 Cents Only.
The company, founded in 1994 and acquired by Franchise Group in 2020, has struggled with financial difficulties, including defaulting on $2 billion in loans. American Freight also faced challenges from a weak housing market, financial stress among lower-paid households, and debt. The home goods industry has been impacted by high mortgage rates, which have reduced house-related shopping due to decreased home buying and remodeling.
In California, American Freight will close stores in Fresno, Modesto, Rancho Cordova, Sacramento, San Leandro, Cerritos, Corona, La Mesa, Oceanside, Ontario, Palmdale, San Diego, Santa Ana, Torrance, and West Covina. This summer, Big Lots announced it would close 315 discount stores across the US, with 40% in California.
