The news: Franchise Group, a holding company whose banners include Pet Supplies Plus, The Vitamin Shoppe, and Buddy’s Home Furnishings, filed for Chapter 11 bankruptcy amid a federal investigation probing its founder’s dealings with shareholder B. Riley Financial, per The Wall Street Journal.

How we got here:

• Consumers’ pullback on discretionary spending hit the company hard as revenues across its business segments fell 12% year over year in Q1.