At Home, the home decor and furniture retailer with more than 200 locations in the United States, is filing for bankruptcy.
The popular retail chain announced Monday that it is entering Chapter 11 protection as part of a restructuring agreement intended to eliminate $2 billion in debt and provide $200 million in capital to aid with the restructuring process.
Owned by Hellman & Friedman, the Plano, Texas-based company, which has been struggling for months amid rising tariffs, entered a forbearance agreement with lenders after it after it missed an interest payment on May 15, Bloomberg reported.
As part of the agreement, At Home said it expects to transition ownership of the company to its pool of lenders who are holding more than 95% of the company’s debt.
Brad Weston, CEO of At Home 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.” He added that the steps they are taking “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.”
At Home did not immediately respond to CBS MoneyWatch’s request for comment.
Originally named Garden Ridge Pottery, the company opened its first store in 1979 in Schertz, Texas. Since then, it has expanded to 260 locations in 40 states. The retail chain sells a variety of home goods items including rugs, furniture, bedding and kitchenware.
It was not immediately clear if the restructuring would coincide with any store closures, although the company states the majority of its stores will remain open and that the store will continue to serve customers “both in-store and online.”
Neil Saunders, managing director of GlobalData, said in an email that debt is not the only obstacle for At Home. The company is also dealing with a slowdown in consumer demand for home furnishings, “which is partly a consequence of low consumer confidence and a sluggish housing market,” he said.
“These dynamics are unlikely to change in the near term,” Saunders added.
The voluntary Chapter 11 proceedings are taking place at the U.S. Bankruptcy Court for the District of Delaware, the company said in its statement. At Home’s Chapter 11 proceedings come amid a wave of financial turmoil for other large retailers. The Container Store and Big Lots filed for bankruptcy last year.
