Franchise Group, which also owns Pet Supplies Plus and Buddy’s Home Furnishings, has filed for Chapter 11 bankruptcy protection after a slew of losses and a scandal connected to its backer B. Riley Financial Inc.WHO: Franchise Group acquired Vitamin Shoppe in 2019. Based in Secaucus, NJ, leading specialty health and wellness retailer The Vitamin Shoppe sells roughly 700 national brands, operating approximately 680 company-operated retail store locations and 20 franchised locations across the US and Canada. It recently announced a partnership with Uber Eats to provide nationwide delivery of online orders from its store via the app. It has an estimated annual volume of about $1 billion.WHY: Trouble has been brewing for the company since a failed 2022 $9 billion takeover attempt of Kohl’s. The last earnings report as a public company for the first half of 2023 showed revenue declines and about a $160 million net loss. In its annual report, the Franchise Group also listed its “substantial indebtedness” as a risk to its business.Eighteen months ago, the company went private in a $2.6 billion deal led by then-CEO Brian Kahn and other members of company leadership and financial partners, and shortly after “was suddenly rocked by the allegations that [he] was involved in the demise” of hedge fund Prophecy Asset Management. According to court filings, Kahn faced fraud allegations from the Securities and Exchange Commission and the Justice Department.