At Home, a well-known home goods retailer operating 260 locations across 40 states, has announced its filing for bankruptcy, primarily due to rising tariffs and a decline in consumer spending.
The Dallas-based company revealed on Monday that it has reached an agreement with its lenders to eliminate nearly all of its approximately $2 billion debt and secure $200 million in new funding to support operations during its Chapter 11 proceedings.
Brad Weston, CEO of At Home, who took the helm last year, stated, “We are operating against the backdrop of an increasingly dynamic and rapidly evolving trade environment as we navigate the impact of tariffs,” adding that these changes would enhance the company’s competitiveness in a volatile market and bolster its long-term resilience.
The uncertainty surrounding tariffs, especially those affecting imports from countries like China, poses a challenge for businesses nationwide. Tariffs on Chinese goods, which once spiked to 145%, were temporarily reduced to 30% last month.
The home goods sector has faced difficulties in conjunction with a nationwide trend of reduced discretionary spending, leading other retailers, such as The Container Store, Bed Bath & Beyond, and Big Lots, to file for bankruptcy.
Despite the challenging environment, At Home has committed to maintaining regular operations throughout the Chapter 11 process. This includes order fulfillment, vendor payments, and the continuation of its loyalty program.
However, the company has indicated potential store closures, mentioning that while “the majority of our stores will remain open,” the Wall Street Journal has reported that around 20 locations may shut down.
Looking ahead, Weston stated that upon completion of the Chapter 11 process, At Home “will move forward with new owners and a meaningfully strengthened balance sheet.”