Home Goods Retailer Closing Dozens of Stores Amid Bankruptcy

The difficulties of running a business can be costly, and many small and large businesses around the country are dealing with rising costs and inflation. 

Some of those rising costs have made companies financially insolvent, and one home goods retailer is looking to adjust its strategy after filing for bankruptcy.

At Home is set to close 26 store locations around the country, as it filed for bankruptcy this week. 

The Texas-based retailer cited "broader economic and retail-specific market pressures," following other major big-box retailers like Big Lots, Joann Fabrics, Macy's and Party City.

The 26 locations will close in a variety of states, from California to New York. Florida, Minnesota, Washington, New Jersey, Pennsylvania, Massachusetts, Illinois, Virginia, Montana and Wyoming will all see closures before September 30.

At Home previously closed six stores before the formal bankruptcy filing, citing "persistent inflation" and the impending effect of tariffs.

Court documents show that the company looked to determine which stores were "operating at sub-optimal performance levels."

The company was founded in 1979 and opened its first location as Garden Ridge Pottery. The store would expand from that initial location in Schertz, Texas to more than 250 stores around the country.

After filing for bankruptcy, the company will look to clear $2 billion in debt. Ownership of the company is expected to be transferred to hedge funds and investment firms in New York City and San Francisco. The company is looking to receive a $200 million infusion to help it stay afloat amid the current uncertainties.

On Tuesday, the Commerce Department reported that consumer spending was down nearly 1% in May, a steep decline after a 0.1% drop in April

“Any time you get a pullback in consumer spending, it tends to lead to a slowdown in overall GDP and broader economic activity, which feeds in to slower sales, hiring and in turn slower income growth,” Ernst & Young economist Gregory Daco told CNN.

“The real risk is we have the onset of a more pronounced slowdown in the economy, driven not necessarily by the actual tariffs but instead by a surge in anxiety that led to a front-loading in demand and will now lead to a demand cliff.”

As companies look to adjust to a new way of American spending, it appears that some companies won't be able to survive the transition.