At Home, the nationwide home décor and furnishings chain with 260 stores across 40 states, has filed for Chapter 11 bankruptcy protection as it seeks to restructure its financial obligations and stabilize operations under mounting economic pressure.
The Dallas-based company confirmed it has reached a deal with lenders to eliminate most of its $2 billion debt while securing $200 million in fresh financing. The move comes as the retailer contends with an unstable trade climate marked by volatile tariffs on imported goods, especially from China, a key sourcing country. Tariffs on certain imports reached levels as high as 145% before a recent reduction to 30%, straining the company’s cost structure and profitability.
CEO Brad Weston, who took the helm last year, acknowledged the challenges facing the sector and expressed optimism about the company’s future under reorganization. “These strategic actions will enhance our long-term competitiveness and build resilience into our business model,” he said. The restructuring plan is expected to streamline operations and prepare the company for a post-bankruptcy transition under new ownership with a healthier balance sheet.
At Home has been navigating a broader industry slump, as U.S. consumers cut back on non-essential purchases. This trend has battered several retail chains in the home goods category, including The Container Store, Bed Bath & Beyond, and Big Lots—all of which have entered bankruptcy proceedings in recent years.
Market analysts point to At Home’s unsustainable debt load as a central cause of its financial unraveling. According to GlobalData managing director Neil Saunders, “The company’s business proposition is not distinctive enough to thrive in a highly competitive space dominated by brands like Ikea and Wayfair.” He further noted that the shopping experience lacked the inspiration and excitement needed to drive in-store traffic.
Although At Home plans to continue day-to-day operations—including honoring customer orders, maintaining supplier payments, and supporting its loyalty program—the company has indicated that store closures are likely. While the majority of its locations are expected to remain open, approximately 20 stores may shut their doors as part of the restructuring process.
Executives remain confident that the Chapter 11 filing will position the company for a stronger future. Upon emerging from bankruptcy, At Home will carry forward with new owners and a substantially improved financial structure, aiming to regain its footing in a rapidly evolving retail landscape.
