I know it's bad, but could I please get some responses?! Thanks!

Is the stove part missing right now? Is the fire in the opening? Or does the pipe connect to the actual wood buring stove?

Is the stove the only heat source? I don't see any floor vents.

This is a pic of my basement. The stove is not the only heat source, we have slim jims to heat and air condition. The pipe connects directly to the stove. We just disconnected the stove because we plan to replace it with a newer version.

I would modify the pipe and snug it up next to the brick.

Shorten/tighten the pipe up and "install" the freestanding FP more inside the fp box. Here is a thought...but not this exactly.

You don't have to live with this sticking out this far. Remove the brick that is flush with the wall (it is unecessary). Depending the of freestanding fireplace size, you may be able to lose most of the hearth bricks. Salvage bricks and just have brick on the wall, then the hearth where the FP will sit. A shorter "flue" attached and it will look nice, and be useful. Basically black brick wall, brick hearth and your pipe going into the wall. It's crazy to lose all that floor space for a stove.

PS. Didn't mean to sound harsh. This could be such a neat space for you but the "elephant in the room" is taking up your fun space. :)

Oh now I see the stove on the otherside of the room. ok I would get a used fireplace insert this looks like stove pipe not to code. its too wide. sell the wood stove and start over with an insert. believe me it safer than losing your home. then we can talk about the bricks which look like lots of soot. and could be a safety issue. try craigs list