At Home’s Financial Crisis May Trigger Bankruptcy, Store Closures Across the U.S.
Another big name in home retail may soon join the growing list of Chapter 11 filings. According to multiple reports, the Wall Street Journal reported that At Home Group is preparing to file for bankruptcy protection as early as today, with initial plans to shutter roughly 20 of its more than 250 stores.
The Texas-based retailer, best known for its warehouse-style stores filled with furniture, décor, and seasonal items, has struggled to stay afloat amid mounting debt and unpredictable trade conditions.
Its owner, private-equity firm Hellman & Friedman, took the company private in 2021, but the weight of a $2 billion debt load has proven difficult to bear.
At Home missed a key interest payment on May 15 and entered a forbearance agreement that expires June 30. With that deadline looming, the company is now negotiating with creditors and landlords in hopes of restructuring its liabilities and securing lease concessions.
Reports indicate the company could shutter 10% of its locations immediately upon filing. That would mean at least 20 stores closing in the short term, with more potentially on the chopping block depending on how restructuring negotiations unfold.
Like many in the industry, At Home has blamed part of its struggles on increased import costs tied to tariffs. The company sources a large portion of its inventory from China, and trade policies have disrupted both pricing and supply chains. Though a recent trade agreement between the U.S. and China may ease some of those tariffs, the damage has already been done.
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This move marks another blow to the home goods sector, which saw a surge during the pandemic as consumers invested in their living spaces, only to cool sharply as inflation and economic uncertainty reined in discretionary spending.
Other retailers like The Container Store and Big Lots have also felt the pressure, with several filing for bankruptcy last year.
At Home has not publicly confirmed the timing of its filing or which stores are on the chopping block, but reports indicate that more closures could follow beyond the initial 20.
The company’s CEO, Brad Weston, formerly of Party City, was brought in to help right the ship last year. Whether this bankruptcy reorganization will provide a lifeline remains to be seen.
Despite its challenges, the brand has maintained loyal customers for more than four decades with its wide-ranging offerings and low prices. But loyalty may not be enough to carry it through the current retail landscape, where even cult-favorite chains are folding under economic pressure.
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