At Home Retail Chain Files for Chapter 11 Amid Debt and Tariff Challenges

At Home, a national home goods retailer with 260 locations across 40 US states, has filed for Chapter 11 bankruptcy protection as it seeks to restructure roughly $2 billion in debt.

The filing follows a period of financial strain brought on by rising tariffs, reduced consumer spending, and broader challenges in the home furnishings industry.

The company announced Monday that it has reached an agreement with its lenders that will eliminate most of its outstanding debt and provide $200 million in new capital to help maintain operations throughout the restructuring process. The voluntary Chapter 11 proceedings are being conducted in the US Bankruptcy Court for the District of Delaware.

CEO Brad Weston, who joined At Home last year, cited ongoing volatility in global trade as a key factor contributing to the company’s financial difficulties.

“We are operating against the backdrop of an increasingly dynamic and rapidly evolving trade environment as we navigate the impact of tariffs,” Weston said.

He added that the restructuring is expected to “increase the resilience of our business for the long term.”

At Home, originally founded as Garden Ridge Pottery in 1979, sells a broad range of home goods, including furniture, rugs, and kitchen accessories. Despite its expansion to hundreds of stores nationwide, the company has faced mounting pressure from competitors such as Ikea, Wayfair, and other major retailers, as well as weakening consumer demand for home furnishings.

The retailer is currently owned by private equity firm Hellman & Friedman. In May, At Home entered a forbearance agreement with its lenders after missing an interest payment. As part of the bankruptcy plan, the company anticipates transitioning ownership to a group of its lenders who hold over 95% of its outstanding debt.

Industry analysts point to both structural and market-specific challenges for the retailer.

“At Home’s extensive debt was not sustainable, and its elimination under Chapter 11 will provide a more stable basis on which the company can operate,” said Neil Saunders, managing director of GlobalData.

However, he noted that the company’s product offering lacks distinctiveness in a competitive market.

“There is too little inspiration and not nearly enough excitement to draw people into the stores.”

While the company says it intends to keep most of its locations open during the restructuring, it did acknowledge that some closures are possible. Recent reports suggest around 20 stores may shutter. At Home has stated it will continue fulfilling orders, paying vendors, and maintaining customer programs throughout the Chapter 11 process.

With input from CNN and CBS News.