Additional Coverage:
Plano, Texas-based home decor retailer At Home has announced it is filing for Chapter 11 bankruptcy protection. The move comes as the company grapples with a hefty $2 billion debt, exacerbated by rising tariffs and a softening market for home furnishings.
In a statement released Monday, At Home CEO Brad Weston pointed to the challenging retail landscape and the impact of tariffs on the business. The restructuring plan aims to slash the company’s debt and secure $200 million in new capital, with ownership likely transitioning to the company’s current lenders.
While the future of At Home’s 260 stores across 40 states remains uncertain, the company insists most locations will continue to operate, serving customers both in-store and online. However, industry experts warn that debt is not the only hurdle At Home faces. Neil Saunders of GlobalData notes that dwindling consumer confidence and a sluggish housing market have dampened demand for home furnishings, creating headwinds that are expected to persist.
At Home joins a growing list of retailers facing financial distress, including recent bankruptcy filings by The Container Store and Big Lots. The company’s Chapter 11 proceedings will unfold in the U.S. Bankruptcy Court for the District of Delaware.