Summary:
At Home, a leading U.S. home decor and furniture retailer with over 200 locations, has filed for Chapter 11 bankruptcy to restructure its $2 billion debt and secure $200 million in capital. The move, driven by rising tariffs and operational challenges, aims to stabilize the business and transition ownership to its lenders. While most stores will remain open, the company seeks to navigate volatile market conditions and strengthen its long-term resilience.
What This Means for You:
- Store Availability: Most At Home locations will stay open, ensuring continued access to home goods.
- Product Pricing: Watch for potential sales or discounts as the company restructures.
- Online Shopping: The retailer will maintain its e-commerce platform for convenience.
- Future Uncertainty: Monitor updates for potential store closures or ownership changes.
Original Post:
At Home, the home decor and furniture retailer with more than 200 locations in the United States, is filing for bankruptcy.
The popular retail chain announced Monday that it is entering Chapter 11 protection as part of a Restructuring Support Agreement intended to eliminate $2 billion in debt and provide $200 million in capital to aid with the restructuring process.
Owned by Hellman & Friedman, the Plano, Texas-based company, which has been struggling for months amid rising tariffs, entered a forbearance agreement with lenders after it after it missed an interest payment on May 15, Bloomberg reported.
As part of the agreement, At Home said it expects to transition ownership of the company to its pool of lenders who are holding more than 95% of the company’s debt.
“While we have made significant progress advancing our initiatives to date, we are operating against the backdrop of an increasingly dynamic and rapidly evolving trade environment as we navigate the impact of tariffs,” said Brad Weston, CEO of At Home in a statement. “The steps we are taking today to fully de-lever our balance sheet will improve our ability to compete in the marketplace in the face of continued volatility and increase the resilience of our business for the long term.”
At Home did not immediately respond to CBS MoneyWatch’s request for comment.
Originally named Garden Ridge Pottery, the company opened its first store in 1979 in Schertz, Texas. Since then, it has expanded to 260 locations in 40 states. The retail chain sells a variety of home goods items including rugs, furniture, bedding and kitchenware.
It was not immediately clear if the restructuring would coincide with any store closures, although the company states the majority of its stores will remain open and that the store will continue to serve customers “both in-store and online.”
The voluntary Chapter 11 proceedings are taking place at the U.S. Bankruptcy Court for the District of Delaware, the company said in its statement. At Home’s Chapter 11 proceedings come amid a wave of financial turmoil for other large retailers. The Container Store and Big Lots filed for bankruptcy last year.
Extra Information:
What is Chapter 11 Bankruptcy? Learn more about the restructuring process and its implications for businesses. Bloomberg Report provides additional context on At Home’s financial challenges.
People Also Ask About:
- Will At Home stores close permanently? Most stores will remain open during the restructuring process.
- Can I still shop online at At Home? Yes, the retailer will continue its e-commerce operations.
- What caused At Home’s bankruptcy? Rising tariffs and financial instability were key factors.
- Will At Home’s bankruptcy affect product prices? Discounts or sales may occur as part of the restructuring.
Expert Opinion:
Experts note that At Home’s bankruptcy underscores the broader challenges faced by retailers in a volatile trade environment. The company’s focus on debt reduction and operational resilience may serve as a model for others navigating similar financial pressures.
Key Terms:
- At Home bankruptcy filing
- Chapter 11 restructuring process
- Home decor retailer financial challenges
- Impact of tariffs on retail
- At Home store closures
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