At Home Files for Bankruptcy Amid Restructuring Efforts
At Home, the renowned home decor and furniture retailer, has officially announced its decision to file for Chapter 11 bankruptcy. This move comes as part of a broader restructuring plan aimed at eliminating approximately $2 billion in debt and securing $200 million in new capital to facilitate the restructuring process.
Store Closures and Operations
As indicated in the company’s court filings, 26 At Home locations across the United States are set to close as part of this restructuring effort. The chain, which boasts over 200 locations nationwide, is primarily owned by Hellman & Friedman and is based in Plano, Texas. The company has been facing significant challenges in recent months, particularly related to increasing tariffs and a declining consumer demand for home furnishings.
In May, At Home entered into a forbearance agreement with its lenders after it missed an interest payment, highlighting the urgency of its financial situation. The company has indicated that it anticipates transitioning ownership to its lenders, who hold over 95% of its debt, during this bankruptcy process.
CEO’s Statement on Future Competitiveness
Brad Weston, CEO of At Home, expressed the company’s struggle with an "increasingly dynamic and rapidly evolving trade environment" in a recent statement. He mentioned that the strategic steps they are taking are designed to enhance At Home’s competitive edge in the marketplace amidst ongoing market volatility.
Historical Context and Challenges
Originally founded as Garden Ridge Pottery in 1979 in Schertz, Texas, At Home has grown to operate 260 stores in 40 states. It offers a diverse range of home goods, including rugs, furniture, bedding, and kitchenware. However, the company is not only grappling with substantial debt; it is also affected by a slowdown in consumer demand in the home furnishings sector. Neil Saunders, managing director at GlobalData, pointed out that current trends of low consumer confidence and a sluggish housing market are contributing factors to At Home’s challenges.
Bankruptcy Proceedings Overview
The voluntary bankruptcy proceedings for At Home are being held in the U.S. Bankruptcy Court for the District of Delaware. This situation reflects a broader trend of financial distress among large retailers, with previous filings from competitors like The Container Store and Big Lots last year.
List of Closing Locations
Here are the addresses of the 26 At Home stores that will close:
- 6135 Junction Blvd, Rego Park, NY 11374
- 300 Baychester Ave, Bronx, NY 10475
- 750 Newhall Dr, San Jose, CA 95110
- 2505 El Camino Real, Tustin, CA 92782
- 14585 Biscayne Blvd, North Miami, FL 33181
- 2200 Harbor Blvd, Costa Mesa, CA 92627
- 3795 E Foothills Blvd, Pasadena, CA 91107
- 1982 E 20th St, Chico, CA 95928
- 2820 Hwy 63 South, Rochester, MN 55904
- 16532 Towne Center Drive Suites A-B, Foothill Ranch, CA 92610
- 1001 E Sunset Drive, Bellingham, WA 98226
- 8320 Delta Shores Circle S., Sacramento, CA 95832
- 1361 NJ-35, Middletown Township, NJ 07748
- 2900 N Bellflower Blvd, Long Beach, CA 90815
- 720 Clairton Blvd, Pittsburgh, PA 15236
- 2530 Rudkin Road, Yakima, WA 98903
- 571 Boston Turnpike, Shrewsbury, MA 1545
- 5203 W War Memorial Dr, Peoria, IL 61615
- 8300 Sudley Rd., Manassas, VA 20109
- 461 Route 10 East, Ledgewood, NJ 07852
- 301 Nassau Park Blvd., Princeton, NJ 08540
- 300 Providence Highway, Dedham, MA 02026
- 905 S 24th Street W, Billings, MT 59102
- 19460 Compass Creek Pkwy, Leesburg, VA 20175
- 3201 North Mayfair Road, Wauwatosa, WI 53222
- 13180 S Cicero Avenue, Crestwood, IL 60445
Conclusion
At Home’s recent move to file for bankruptcy underscores the challenges facing many retailers in the current economic climate. As the company navigates this turbulent period, its focus will be on restructuring and improving its long-term resilience in a demanding market. For more insights on home decor and tips for enhancing your living space, check out our blog at ChatbiHouse.
