The Texas-based home décor retailer At Home prepared to file for Chapter 11 bankruptcy protection, as reported by Bloomberg. Burdened with nearly $2 billion in debt and only $17.3 million in available liquidity, the company missed a critical interest payment on May 15, 2025, entering a forbearance agreement with lenders set to expire June 30.
The filing aims to restructure its finances while closing approximately 20 of its 200+ stores across 40 states. The Wall Street Journal (June 2025) notes that Chapter 11 could provide breathing room to renegotiate debt terms, but success hinges on boosting cash flow and consumer demand.
Will Store Closures Strengthen or Weaken Its Footprint?
At Home’s plan to close underperforming locations aims to reduce costs but risks shrinking its market presence. With over 200 locations, the initial closure of 10% of its stores could streamline operations, focusing on high-traffic regions.
Furniture Today (June 2025) reports that At Home generated $725.9 million in 2023 sales, but declining consumer spending on home furnishings, down 5% industry-wide per IBISWorld, threatens revenue.
If closures alienate loyal customers or fail to offset losses, the retailer’s brand visibility could erode against competitors like HomeGoods and Wayfair.
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Can At Home Overcome Tariff-Driven Cost Pressures?
At Home’s reliance on Chinese imports, hit by 30% to 145% U.S. tariffs, has spiked costs, per The Wall Street Journal (June 2025). The retailer’s shift to sourcing from India and other countries is underway but incomplete, leaving it vulnerable.
These tariffs, intensified during Donald Trump’s presidency, have squeezed margins, with first lien bonds trading at a dire 26.5 cents on the dollar in May 2025.
Restructuring must address supply chain inefficiencies to restore profitability, as competitors with diversified sourcing gain an edge.
Debt Overhang Threatens Long-Term Viability
At Home’s $2 billion debt, compounded by private equity owner Hellman & Friedman’s 2021 acquisition, looms large. Bloomberg (June 2025) highlights that vendors’ short payment terms signal distrust in At Home’s stability.
Chapter 11 could allow debt restructuring or asset sales, but with only $17.3 million in liquidity, the retailer faces tight constraints.
Without significant concessions from lenders or a surge in sales, At Home risks deeper insolvency, potentially mirroring Bed Bath & Beyond’s 2023 collapse.
Did you know?
Founded in 1979 as Garden Ridge Pottery, At Home rebranded in 2014 to focus on home décor, growing to over 200 stores before its current financial crisis.
Retail Competition Demands Strategic Innovation
At Home struggles to differentiate in a crowded market. Retail analyst Neil Saunders, cited by Fox Business (June 2025), criticizes its lackluster store design and uncompetitive pricing against IKEA and Wayfair.
The post-pandemic home furnishings boom has faded, with inflation curbing discretionary spending. At Home must leverage Chapter 11 to revamp its brand, possibly through enhanced e-commerce or exclusive product lines, to regain consumer traction and ensure restructuring success.
What Lies Ahead for At Home’s Survival?
At Home’s Chapter 11 filing is a high-stakes gamble to shed debt and refocus operations amid tariffs, competition, and waning consumer demand. Closing 20 stores and renegotiating its $2 billion debt could stabilize finances, but only if paired with bold strategic shifts.
As the retail sector faces ongoing disruption, can At Home reinvent itself to avoid oblivion?
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