Franchise Group has agreed to sell The Vitamin Shoppe to Kingswood Capital Management and Performance Investment Partners (PIP), as the retailer emerges from bankruptcy proceedings initiated five months ago, according to a report by CoStar News.
Under the definitive agreement, the Los Angeles-based private equity firms will acquire the Secaucus, New Jersey-headquartered specialty retailer and invest in a broad revitalisation strategy.
While financial terms of the transaction, which is expected to close in Q2 2025, have not been disclosed, Bloomberg Law has reported a purchase price of approximately $193.5m.
The Vitamin Shoppe operates a national footprint of roughly 650 stores and is positioned as a leading pure-play omnichannel retailer of vitamins, nutritional supplements, sports nutrition products, and specialty health offerings.
Its portfolio includes an extensive selection from 700 third-party brands as well as proprietary labels such as The Vitamin Shoppe, BodyTech, and True Athlete.
The acquisition adds to a broader trend of private equity capital targeting retail assets with operational upside. Kingswood and Performance Investment plan significant investments into store modernisation, digital platform enhancements, third-party brand partnerships, and expansion of the company’s owned brands portfolio.
The deal highlights growing private equity interest in consumer-facing businesses, following notable transactions such as Blackstone’s acquisition of a majority stake in Jersey Mike’s Subs, Roark Capital’s takeover of Subway, and Sycamore Partners’ planned $10bn buyout of Walgreens Boots Alliance.
Franchise Group, based in Delaware, Ohio, filed for Chapter 11 bankruptcy in November 2024 amid mounting pressure from a challenging macroeconomic environment that severely impacted discretionary retail categories. The group’s American Freight chain was also slated for closure as part of the restructuring efforts. In addition to Vitamin Shoppe, Franchise Group owns Pet Supplies Plus and Buddy’s Home Furnishings.
Jefferies is acting as exclusive financial adviser to Kingswood Capital and Performance Investment Partners. Legal counsel is being provided by McDermott Will & Emery and Sidley Austin. Ducera Partners is serving as investment banker to Franchise Group, with Kirkland & Ellis providing legal counsel.
