At Home Files for Bankruptcy Amid Financial Challenges

News Summary

At Home, a furniture company based in Texas, has filed for Chapter 11 bankruptcy in Delaware. Despite this setback, the company assures customers that local stores will remain open. The restructuring plan aims to alleviate nearly $2 billion in debt while injecting $200 million for operations. However, At Home will close 26 stores mainly outside Texas, as it navigates a difficult trading environment impacted by tariffs. With a legacy of resilience, At Home hopes to stabilize its operations and continue serving its customer base.

Breaking News from Texas: At Home Files for Bankruptcy

In a stunning turn of events, Texas-based furniture company At Home has filed for Chapter 11 bankruptcy in a Delaware court recently. This is a significant challenge for the home décor giant that has been charming Texan households since its founding in 1979.

While the company is navigating through this financial debacle, it has assured its loyal customers that they can continue shopping at their local stores. That’s right! At Home is determined to serve its customers, even during such turbulent times.

Big Changes Ahead for At Home

The bankruptcy comes as the company has entered a Restructuring Support Agreement with its lenders. This bold move aims to clear out nearly $2 billion in funded debt—which is no small feat. The financial restructuring will also inject $200 million into the company, providing much-needed capital for operations moving forward.

However, it’s not all smooth sailing. The CEO has pointed out that At Home is battling a dynamic and challenging trade environment, primarily due to tariffs that have been impacting imports and the overall pricing of goods. With a whopping 90% of its products sourced from overseas and over 600 product partners, it’s easy to see where the challenges are cropping up.

Store Closures on the Horizon

As part of its restructuring plan, At Home plans to shutter 26 of its stores across the United States. Thankfully for Texans, none of these closures will happen in Texas. Most of the affected locations are found in states like California and New York, promising to retain their foothold in the Lone Star State amidst this rocky patch.

At Home employs more than 7,000 individuals and has built quite a following, boasting over 70 million visitors to its physical stores and around 53 million online visitors annually. That’s a lot of people who love their home furnishing options!

A Look Back at At Home’s Journey

At Home isn’t a newcomer to financial struggles; the company originally started as Garden Ridge Pottery in Schertz, Texas, and faced bankruptcy back in 2004. After transitioning ownership to the private equity firm Hellman & Friedman in 2021, the company rallied to showcase a fresh vision and commitment moving forward.

As the story unfolds, At Home is now faced with further pressure from newly imposed tariffs and ongoing trade negotiations. This challenging landscape has the company evaluating its operational strategy with a renewed dedication to enhancing customer value and ensuring operational discipline.

The Road Ahead

With estimated assets and liabilities ranging between $1 billion and $10 billion each and over 10,000 creditors noted in its bankruptcy filing, At Home has its work cut out. The upcoming months will be crucial for the company to establish a firm footing as they set their sights on recovery and resurgence in the furniture market.

Looking ahead, At Home continues to draw a large chunk of its sales from in-store activity, with over 90% reported during the fiscal year 2025, which ended in January. This reliance on physical stores illustrates the company’s potential strength as it charts its way through its new business landscape.

For now, At Home is poised to focus on its restructuring efforts, employees, and dedicated customers while it disregards the bumps in the road. With a rich history and a loyal customer base, there’s hope that this chapter can lead to brighter days ahead for this Texas treasure.

Deeper Dive: News & Info About This Topic

• WFAA
• NBC DFW
• Dallas News
• Houston Chronicle
• Wikipedia: At Home