At Home Files for Chapter 11 Bankruptcy Amid Economic Challenges

News Summary

At Home, a national home décor retailer, has filed for Chapter 11 bankruptcy while planning to close 26 stores across the U.S. to restructure its operations. The company, which employs over 7,000 people, aims to eliminate nearly $2 billion in debt. CEO Brad Weston asserts that these steps are critical for the company’s financial future, despite the closures primarily affecting locations outside Texas. At Home’s challenges include fluctuating interest rates and inflation influencing operational costs.

Houston – At Home, a national home décor and furnishings retailer, filed for Chapter 11 bankruptcy on Monday, June 16, 2022, amid mounting economic challenges and changing consumer behaviors. The company announced plans to close 26 of its retail locations nationwide as part of its restructuring strategy, although none of the closures will occur in Texas.

The bankruptcy filing affects a workforce of approximately 7,170 employees across At Home’s 260 retail locations situated in 40 states, including several key stores in the Houston area. At Home operates locations in Conroe, Katy, Willowbrook, Humble, Cypress, Richmond, Sugar Land, Pearland, and Webster. Employees will continue to receive pay and benefits throughout the bankruptcy transition.

As part of its Chapter 11 process, At Home aims to eliminate nearly $2 billion in funded debt. The company has secured a capital infusion of $200 million to support its restructuring efforts and has entered into a Restructuring Support Agreement with lenders holding more than 95% of its debt. Additionally, At Home has obtained $600 million in debtor-in-possession financing to maintain continued operations while navigating the bankruptcy process.

Challenges Leading to Bankruptcy

At Home’s bankruptcy filing reflects broader economic challenges that many retailers have encountered recently. The company has faced fluctuating interest rates, reduced foot traffic in stores, inflationary pressures, and tariffs that have all contributed to increased operational costs. These issues prompted the company to take steps towards financial reorganization to enhance operational efficiency and improve overall profitability in the future.

Restructuring Plans

The announced store closures will primarily affect locations on both the east and west coasts of the United States. The restructuring plan is intended to position At Home for a stronger financial future as it anticipates emerging from bankruptcy under new ownership. CEO Brad Weston has emphasized that this restructuring is a critical step forward for At Home.

Company Background

At Home was originally founded as Garden Ridge Pottery in 1979 in Schertz, Texas, near San Antonio. Over the years, the retailer expanded its footprint and product offerings, establishing itself as a go-to destination for home décor and furnishings. Despite its challenges, At Home remains a significant player in the home retail market, with a strong presence across the country.

As the retail landscape continues to evolve, At Home’s restructuring efforts reflect the company’s determination to adapt and thrive amid economic uncertainty. The forthcoming changes may significantly reshape the company’s operations and overall strategy in the years to come.

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Additional Resources

• NBC DFW
• Wikipedia: Chapter 11 Bankruptcy
• Houston Chronicle
• Google Search: At Home bankruptcy
• CT Insider
• Encyclopedia Britannica: Bankruptcy
• WFAA
• Google News: At Home