(Bloomberg) -- Franchise Group Inc., the owner of brands including the Vitamin Shoppe and Pet Supplies Plus, filed for bankruptcy protection after months of losses and turmoil surrounding its founder and its backer B. Riley Financial Inc.

The company, also known as FRG, filed under Chapter 11 in Delaware, listing assets and liabilities each between $1 billion and $10 billion.

Bloomberg News, citing people with knowledge of the matter, reported late Saturday that FRG was preparing to hand control to lenders including HPS Investment Partners after months of negotiations with the group over a restructuring.

FRG’s troubles have been at the center of turmoil surrounding Los Angeles-based B. Riley, the investment and brokerage firm that helped arrange a $2.8 billion buyout of the company last year. The buyout was led by founder and then-Chief Executive Officer Brian Kahn.

Just months after FRG’s debt-fueled buyout by Kahn, the founder stepped down from his CEO position amid a criminal investigation into his role in a securities fraud case tied to the collapse of defunct hedge fund Prophecy Asset Management.

Trouble at FRG accelerated as its brands struggled to perform as projected, compounded by maturities on $2.6 billion in debt.

Starting in 2018, Kahn had used a series of acquisitions to create FRG with financial backing from B. Riley. In last year’s buyout, B. Riley took a 31% stake in FRG also loaned about $200 million to Kahn, with his stake in FRG used as collateral.

--With assistance from Jill R. Shah.

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