Skyline Buys Rent-to-Own Franchisor Buddy’s

Skyline Investors has acquired Buddy’s Home Furnishings, the third-largest rent-to-own franchisor in the United States.

Buddy’s was founded in 1961 as a rent-to-own retailer of household goods and has expanded into a national franchisor of home furnishings, electronics, and appliances. The company’s business model centers on lease-to-own agreements that allow customers to take home furniture, appliances, and electronics with flexible weekly or monthly payment plans and the option to own the item once payments are completed.

Buddy’s product assortment includes living room and bedroom furniture, kitchen and major appliances, electronics such as televisions and computers, and related home goods, often featuring well-known brands alongside its own offerings.

Buddy’s Home Furnishings was acquired in 2019 by Franchise Group, a retail holding company with a portfolio of franchised and franchisable businesses that over time included Pet Supplies Plus, Wag N’ Wash, American Freight, The Vitamin Shoppe, Badcock Home Furniture & More, Buddy’s Home Furnishings, and Sylvan Learning.

In 2023, an investor group led by CEO Brian Kahn, B. Riley Financial, and Irradiant Partners acquired Franchise Group in a take-private transaction valued at approximately $2.6 billion. In late 2024, the company encountered financial distress and filed for Chapter 11 bankruptcy. Under a reorganization plan confirmed by the U.S. Bankruptcy Court in June 2025, Franchise Group’s remaining core brands, including Buddy’s Home Furnishings, were placed under Fusion Parent LLC, an entity owned by Franchise Group’s first-lien lenders.

Today, Orlando-headquartered Buddy’s is led by CEO Michael Bennett and operates more than 220 locations across 18 states and Guam, offering furniture, appliances, electronics, and home goods through rental and rent-to-own programs. Buddy’s was recently ranked No. 276 on Entrepreneur’s Franchise Top 500 list for 2025.

“This is an exciting new chapter for Buddy’s,” said Mr. Bennett. “Skyline brings a collaborative mindset that our franchisees and customers will feel immediately. Their flexible approach and ability to move quickly allowed them to structure a solution that worked for us when others couldn’t. We’re not just changing ownership; we’re gaining committed partners who understand our business, value our franchise network, and are ready to invest in our collective success.”

Skyline Investors makes control and non-control mezzanine investments in small and mid-sized founder-led or family-owned companies across a range of sectors, including healthcare, consumer and business services, technology, and domestic manufacturing. These businesses typically have revenues between $5 million and $50 million. Los Angeles-headquartered Skyline is led by co-founders and managing partners Jeremy May and Kevin Tom.

Skyline has previous experience in the rent-to-own sector, having acquired Majik Rent-to-Own in June 2024. “Buddy’s represents exactly the type of platform opportunity we’re built to support,” said Mr. Tom. “With Buddy’s proven brand and strong franchise network, there’s a clear runway for growth. We’re excited to roll up our sleeves alongside the management team and franchisees to strengthen operations, support local owners with focus on their profitability, and invest in the next chapter of the business.”

Co-investing alongside Skyline are Jeffrey Jaeger and Scott Alter, co-founders and principals of Standard Communities, a top six national affordable housing developer based in New York and Los Angeles.

Skyline held a final close of its first fund, Skyline Investors Fund I LP, with $125 million of capital in July 2025. Skyline was founded in 2019 in partnership with Standard Communities.