The Vitamin Shoppe will continue to trade after a deal brokered by owner FRG as it seeks buyers for its multiple brands amid retail struggles and shuts American Freight.

Franchise Group filed its chapter 11 petition in the U.S. Bankruptcy Court in Wilmington, Del., after going private last year in a management buyout arranged by B. Riley, a Los An

Lenders are vying to take control of 100 percent of the company in a debt-for-equity swap that would clean up the balance sheet.

Franchise Group Inc., which owns brands including the Vitamin Shoppe and Pet Supplies Plus, is preparing for a bankruptcy filing as soon as this weekend following months of controversies surrounding its founder.

Franchise Group Inc., the owner of brands including the Vitamin Shoppe, Buddy’s Home Furnishings and Pet Supplies Plus, filed for bankruptcy protection after months of losses and turmoil surrounding its backer B.

Vitamin Shoppe owner Franchise Group, which was taken private by B. Riley Financial in a troubled deal, has filed for bankruptcy but plans to keep operating most of its businesses.

Under the proposal, which must be approved by a bankruptcy judge, supporting lenders have agreed to swap out first lien debt for 100% of the equity in the reorganized business. The company has been at the center of Los Angeles-based B.