News Summary
At Home, the Texas-based home goods chain, has filed for Chapter 11 bankruptcy due to financial strains caused by increasing tariffs. Despite this, the company plans to keep its 260 stores operational, although approximately 20 will close. Through a restructuring plan, At Home aims to eliminate nearly $2 billion in debt and secure a $200 million capital infusion for stabilization. The company’s debt issues stem from sourcing around 90% of its products internationally, making it vulnerable to tariff-related disruptions. Engaging financial experts, At Home seeks to position itself for future growth while navigating this complex situation.
Coppell, Texas – At Home, the North Texas home goods and furniture chain, has filed for Chapter 11 bankruptcy as of Monday. This significant move comes amid ongoing trade challenges, primarily the “continued volatility” attributed to recent tariffs that have impacted its operations.
Despite the bankruptcy proceedings, At Home will continue to operate its 260 stores across 40 states, assuring customers that they will remain open for business. However, as part of the bankruptcy restructuring plan, approximately 20 stores are expected to close. Fortunately for Texas customers, none of these closures will occur within the state.
The company, which has its headquarters in Coppell, Texas, has entered a “Restructuring Support Agreement” with lenders holding approximately 95% of its debt. This agreement is a key strategy to eliminate nearly all of its $2 billion debt while facilitating a capital infusion of $200 million to support the restructuring process. Following the completion of the restructuring, ownership of At Home will hand over to its lenders.
At Home has cited financial strains from the heightened tariffs as a driving factor in its restructuring decision. With around 90% of its products sourced from overseas, the company’s vulnerability to tariff-related pressures has intensified, leading to accelerated financial struggles and the urgent need for a comprehensive solution.
The home goods retailer, which offers a diverse selection of home decor and furniture items including kitchen sets and outdoor patio furniture, has over 10,000 creditors and lists its estimated assets and liabilities between $1 billion and $10 billion. This wide range reflects the complexity of the company’s financial situation and the magnitude of its operational scale.
As it moves forward, At Home has engaged various financial and restructuring experts to assist in navigating the bankruptcy process. The current filing aligns with a broader retail trend, as several companies, including Joann and Party City, have sought bankruptcy protection in recent months due to similar economic pressures.
Originally known as Garden Ridge, At Home rebranded in 2013. The company has worked diligently to strengthen its business foundation and improve profitability in recent years. In light of the current retail challenges, the move to chapter 11 bankruptcy is seen as a measure to stabilize operations and position At Home for future growth.
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Additional Resources
- WFAA: At Home Stores Bankruptcy
- Wikipedia: Bankruptcy
- Axios: At Home Bankruptcy
- Google Search: At Home bankruptcy
- Dallas News: Retailer At Home Files for Bankruptcy
- Google Scholar: At Home bankruptcy
- Fox San Antonio: At Home Files for Bankruptcy
- Encyclopedia Britannica: Retail
- CFO Dive: At Home Impacted by Tariffs
- Google News: At Home bankruptcy
