S&P revises Franchise Group view to negative

S&P said it revised its outlook on Franchise Group Inc. to negative from stable and affirmed all its ratings, including the B+ issue-level rating on its first-lien term loan and B- issue-level rating on its second-lien term loan.

S&P said Franchise Group’s fiscal-year 2022 operating performance was weaker than expected, particularly due to the performance of American Freight, which dragged down its overall results.

“We expect challenging macroeconomic conditions will negatively affect the home furnishing segment and pressure the company's operating margins in 2023,” S&P said in a news release.

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