Two Morganton furniture stores announce closures; Ingles suffers loss

American Freight closed permanently

American Freight in the Fiddler’s Run shopping center has permanently closed its doors, along with 11 other North Carolina locations.

Franchise Group, owner of American Freight, started its Chapter 11 bankruptcy process on Nov. 3. Soon after, the “going out of business” sales in stores and online commenced nationwide on Nov. 5. Their website offers 80%-90% off on furniture and appliances.

These closures come from the “restructuring plan” of the parent company to “wind down American Freight, which has struggled due to sustained inflation and macroeconomic challenges facing the large durable goods sector,” according to the company’s statement on the matter.

American Freight opened its first store in Ohio in 1994.

— SEB

Big Lots to transfer to Roses’ parent company

Big Lots will transfer between 200 and 400 locations to a new parent company, but Morganton’s location still has signs declaring closure.

The company announced Friday, Dec. 27, that they have agreed to a sale that would enable the transfer of Big Lots assets to other retailers, such as Variety Wholesalers, Inc. The Henderson-based retail company plans to potentially operate 200 to 400 Big Lots stores.

Neither company has specified which stores will be transferred to the new company. As of Tuesday, Dec. 31, signs have been posted on the store’s window front that say, “Entire Store 10-30% Off” and “Store Closing.” Company officials did not respond for confirmation.

Variety Wholesalers also may employ current employees at the stores and up to two distribution centers. The company owns more than 400 retail stores across Southeast and Mid-Atlantic U.S., including Roses.

— SEB

INGLES’ NET INCOME DROPS 50%

Ingles Markets reported a decline in sales for the fourth quarter of its annual results with Hurricane Helene further contributing to the decreased numbers.

For the quarter that ended on Sept. 28, net sales totaled $1.4 billion, compared to $1.58 billion for the same quarter from the previous year. Although 2023-24 had 52 weeks while fiscal year 2022-23 had 53 weeks, Ingles’ markets showed a decrease in sales prior to Hurricane Helene.

The storm, which passed through the region on Sept. 27, caused flooding, power outages, communication breakdowns, and severe road closures, especially in Buncombe County, where Ingles is headquartered.

The company reported $34.9 million in impairment losses due to the storm, which included $30.4 million impairment loss related to inventory damage. An impairment loss is a depreciation in the fair market value of an asset. An additional $4.5 million was reported in losses for property and equipment.

Ingles net income for the fiscal year ending Sept. 28 was $105.5 million, down almost 50% from the previous year’s $210.8 million.

According to Daily Digest, four stores (Spruce Pine, Morganton, Swannanoa, and Newland) remain closed, but all are expected to reopen in 2025. As previously reported, Ingles’ Morganton location at 120 Carbon City Road is slated to reopen in March.