At Home Files for Chapter 11 Bankruptcy Protection

At Home, a popular home decor retailer based in Plano, Texas, has filed for Chapter 11 bankruptcy protection. The company, which operates 260 stores across 40 states, cited tariff impacts and a slowdown in consumer spending as major factors leading to its financial struggles. At Home's CEO, Brad Weston, stated that the company is "operating against the backdrop of an increasingly dynamic and rapidly evolving trade environment as we navigate the impact of tariffs."

The company has entered into a restructuring support agreement with its lenders to eliminate nearly $2 billion in debt and secure $200 million in fresh funding. This agreement is designed to help At Home continue operations while it undergoes the Chapter 11 process. The company plans to keep most of its stores open and continue fulfilling orders, paying vendors, and maintaining its loyalty program during the proceedings, according to CNN.

At Home's financial troubles are not unique in the home goods sector. Other retailers like Big Lots and Bed Bath & Beyond have also faced bankruptcy due to similar challenges. The company plans to emerge from bankruptcy with new owners and a strengthened balance sheet. Lenders such as Redwood Capital Management, Farallon Capital Management, and Anchorage Capital Advisors are set to become the new owners, as reported by Fox Business.

The restructuring aims to improve At Home's ability to compete in the marketplace and increase the resilience of its business for the long term. The company has also secured $600 million in debtor-in-possession financing to support operations during the court-supervised process, according to NBC15. Upon completion of the restructuring, At Home will focus on investing in strategic initiatives to fortify its business.