Buddy's Home Furnishings Lawsuit: Bankruptcy, Not a Payout
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If you searched “buddy home lawsuit” because your local Buddy's store changed hands or closed, this is why. The chain's largest franchisee, Buddy Mac Holdings, went bankrupt in December 2025, sold its stores, and has been in Chapter 7 liquidation since August 11, 2026. As of October 2026 we found no consumer class action against Buddy's and no buddy home settlement for customers — no fund and no claim form.
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Reviewed by Leonard Goldberg, Editor · Last updated
What the Litigation Is Actually About
Most of the “buddy's home furnishings lawsuit” news is a fight between businesses, not a case brought by customers. Buddy's is a rent-to-own franchisor founded in 1961 and based in Orlando; individual stores are often run by independent franchisees. Its biggest franchisee, Buddy Mac Holdings, ran 47 locations when it filed for bankruptcy and blamed the 2024 bankruptcy of Buddy's then-parent, Franchise Group, for its supply and financing problems.
The franchisor terminated Buddy Mac's franchise agreement in September 2025. In November 2025 it sued 43 Buddy Mac entities in Florida state court, alleging breach of the franchise agreements and trademark violations; per the franchisor, Buddy Mac owed it $643,000. Buddy Mac disputed that and moved the case to federal court. Those are allegations from both sides — none was decided on the merits.
Case Details
The main case is In re Buddy Mac Holdings, LLC, No. 25-34839, U.S. Bankruptcy Court for the Northern District of Texas (Dallas), before Judge Michelle V. Larson, filed December 4, 2025 together with 48 affiliated companies. Epiq runs the case website at dm.epiq11.com.
Two older matters also surface in searches. In 2020 the Federal Trade Commission settled antitrust charges against Buddy's Newco, LLC (FTC Docket No. C-4715) over store-swap agreements with Aaron's and Rent-A-Center. In 2017 a federal bankruptcy court in Kentucky ruled that one Buddy's franchisee had willfully violated a customer couple's bankruptcy protection (Adv. No. 16-3007).
Status: Franchisee in Chapter 7, No Customer Settlement
The franchisor's lawsuit against Buddy Mac ended in a mutual release approved by the bankruptcy court and was dismissed with prejudice, with no money changing hands. The franchisor itself was bought by Skyline Investors (announced February 4, 2026) and keeps operating more than 220 locations in 18 states and Guam. None of this created a fund for customers.
Does This Affect You?
Customers of former Buddy Mac stores: your rent-to-own agreement was most likely sold along with the store. The buyers acquired the customer rental contracts — Phonix RBS for its stores, Rent One for its eight. In plain terms, you probably now owe your payments to a new company, and your contract terms carry over. Ask for a written statement showing your balance, the payments already credited, and who owns the agreement.
Customers of other Buddy's stores: nothing in these cases changes your agreement.
Creditors of Buddy Mac (landlords, suppliers, former staff owed wages) take part through the bankruptcy claims process, not a class action. The Epiq case site and the Chapter 7 trustee are the places to check.
Is There Money for Customers?
The FTC's 2020 orders barred the store-swap agreements and required compliance programs; the FTC did not announce any payments to renters. The only consumer award we found is an individual one: the Kentucky ruling in 2017 awarded one couple $13,953.25, mostly attorney's fees and punitive damages, because the franchisee kept collecting during their bankruptcy. That is a single case, not a program anyone else can join.
Buddy's Home Furnishings Lawsuit Timeline
- 1
May 12, 2020 — FTC Orders Become Final
The FTC finalizes orders against Aaron's, Buddy's Newco and Rent-A-Center over reciprocal store-swap agreements from June 2015 to May 2018. No consumer payments were announced.
- 2
November 2024 — Parent Company Bankruptcy
Franchise Group, then the owner of Buddy's, files for Chapter 11. It exits bankruptcy on June 6, 2025, with Buddy's still part of the business.
- 3
September–November 2025 — Franchise Fight
The franchisor terminates Buddy Mac's franchise agreement, then sues 43 Buddy Mac entities in Florida, claiming $643,000.
- 4
December 4, 2025 — Buddy Mac Files Chapter 11
The 47-store franchisee and 48 affiliates file in the Northern District of Texas, No. 25-34839.
- 5
Early 2026 — Stores Sold, Franchisor Changes Hands
The court approves sales of Buddy Mac stores and customer contracts to Phonix RBS, Rent One and National TV Sales & Rentals. Skyline Investors acquires the Buddy's franchisor. The franchise lawsuit is settled with no payment.
- 6
August 11, 2026 — Converted to Chapter 7
The Buddy Mac case becomes a liquidation run by a trustee. As of October 2026 there is still no consumer class action or settlement.
Three Things to Watch For
A store sale, a new name on the bill, and websites calling it a “lawsuit” create easy openings:
“Pay us now or lose your furniture” calls
When a store is sold, scammers pose as the “new owner” and push payment by gift card, wire or payment app. Before you pay anyone new, confirm the payee in person at the store or through the number on your contract.
“Claim your Buddy's settlement” pages
There is no consumer settlement. Pages asking for your Social Security number or bank login to “check eligibility” are collecting data, not filing claims. Several sites describe a Buddy's class action without naming a court or case number — treat that as a warning sign.
Fees to “file your bankruptcy claim”
Filing a proof of claim in the Buddy Mac case does not require a paid middleman, and renters usually have no claim to file. Anyone charging upfront to get you “money from the Buddy's bankruptcy” is selling something that most likely does not exist.
Buddy's Home Furnishings Lawsuit — Questions People Actually Ask
Is there a Buddy's Home Furnishings class action?
As of October 2026 we found no consumer class action against Buddy's with a court and case number. The lawsuits in the news are a franchise dispute and the Buddy Mac Holdings bankruptcy (No. 25-34839, N.D. Tex.). Some websites claim class actions over rent-to-own pricing but give no case details we could check.
Is there a buddy home settlement I can claim?
No. There is no fund, no claim form and no deadline for customers. If a real class settlement is ever approved, a court-appointed administrator sends notices and runs an official claim site.
My Buddy's store closed or changed names. Do I still have to pay?
Probably yes. The buyers of former Buddy Mac stores acquired the customer rental contracts, so the agreement usually continues with the new owner. Get the new payee confirmed in writing and keep records of every payment.
Who owns Buddy's now?
Skyline Investors acquired the Buddy's franchisor, announced February 4, 2026. Buddy Mac Holdings was only a franchisee; its stores went to Phonix RBS, Rent One and National TV Sales & Rentals.
What was the FTC case about?
The FTC alleged that Buddy's, Aaron's and Rent-A-Center swapped customer contracts with competitors from June 2015 to May 2018, which reduced competition. The final orders of May 12, 2020 banned such agreements. They did not set up payments to customers.
Can Buddy's keep collecting if I file for bankruptcy?
Generally no — the automatic stay stops collection. In 2017 a Kentucky bankruptcy court awarded a couple $13,953.25 after finding a Buddy's franchisee willfully violated the stay by continuing to collect and trying to take back the furniture. If you are in bankruptcy, tell your attorney or trustee right away about any collection attempt.
What does Chapter 7 mean for the Buddy Mac case?
Since August 11, 2026, a trustee has been liquidating what is left and reviewing creditor claims. The stores are already sold. Renters are usually not creditors, so most customers have nothing to file.
What should I do right now?
Keep your contract and payment receipts, confirm who owns your agreement, and ignore anyone offering a “Buddy's settlement” for a fee. To see real open settlements, check our open class action settlements list.
Separate from this case: were you injured in the last 2 years?
Class-action payouts are fixed amounts through an administrator. A personal injury claim is a different case — and often worth far more. Free estimate, no obligation.
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