At Home, a popular home goods retailer with 260 stores across 40 US states, has filed for bankruptcy, citingthe backdrop of tariff increases and aslowdown in consumer spending.
The Dallas-based company announced Monday that it had entered an agreement with its lenders that “will eliminate substantially all” of its roughly $2 billion in debt and provide$200 million in fresh funding to keep At Home operating while it navigates the Chapter 11 process.
Brad Weston, At Home’s CEO who joined the company last year, said in a statement that the company is “operating against the backdrop of an increasingly dynamic and rapidly evolving trade environment as we navigate the impact of tariffs” and that the changes “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.”
Businesses across the United States are grappling with uncertainty about tariffs, including on the countries from which At Home sources its products,notably China. At one point, American tariffs on that country were as high as 145% before an agreement last monthto temporarily lower that to 30%.
A pullback in discretionary spending in the US in recent years has also spelled trouble for the home goods industry, withThe Container Store,Bed Bath & BeyondandBig Lotsall filing for bankruptcy.
At Home, which sells a wide variety of items such as furniture, rugs and other home accessories, said it would continue to operate as usual, including fulfilling orders, paying vendors and maintaining its loyalty program during the Chapter 11 process.
However, the privately held company hinted that it might close some locations, saying that a “majority of our stores will remain open.” TheWall Street Journal recently reportedthat around 20 At Home locations were set to shutter.
Upon exiting Chapter 11, At Home “will move forward with new owners and a meaningfully strengthened balance sheet,” Weston said.