At Home files for bankruptcy with lenders set to take control
According to the terms agreed upon in the restructuring support agreement (RSA), a planned financial reorganisation aims to cut the company's existing debt by $2bn.
It includes a provision for a $200m capital injection to aid the company during and after the restructuring phase.
As per the RSA, ownership of At Home is expected to shift to the participating lenders post-restructure.
The lenders, which are set to provide new capital, include entities associated with Redwood Capital Management, Farallon Capital Management, and Anchorage Capital Advisors. They hold more than 95% of the company's debt.
The proceedings have commenced in the US Bankruptcy Court for the District of Delaware to execute its restructuring plan.
At Home has faced recent financial difficulties which have intensified due to tariffs and trade disputes.
The US retailer will continue to operate and offer affordable design and decorating solutions during this court-supervised process.
In relation to the Chapter 11 proceedings, At Home is arranging $600m in debtor-in-possession financing, which incorporates the $200m capital boost from some existing lenders and a roll up of $400m of existing senior secured debt.
At Home expects the financing, along with revenue from ongoing operations, to provide ample liquidity for the business during the court-supervised process, subject to court approval.
The retailer has submitted standard first-day motions to the court to sustain business operations and manage the Chapter 11 cases efficiently. This includes the uninterrupted payment of team member wages and benefits.
At Home also intends to fully compensate vendors and suppliers for goods and services provided post-filing.
At Home CEO Brad Weston stated: 'Over the past several months, we've taken deliberate steps to strengthen the foundation of our business - sharpening our focus, elevating our customer value proposition and driving operational discipline. These efforts are aimed at delivering sustained sales growth, optimising our inventory management, improving efficiency and enhancing overall profitability.
'While we have made significant progress advancing our initiatives to date, we are operating against the backdrop of an increasingly dynamic and rapidly evolving trade environment as we navigate the impact of tariffs. The steps we are taking today to fully de-lever our balance sheet 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.'
Kirkland & Ellis is providing legal counsel, PJT Partners is the financial advisor, AlixPartners is the restructuring advisor and Hilco Real Estate is the real estate consultant for At Home.
Strategic communications advice is being offered by Joele Frank and Wilkinson Brimmer Katcher.
Dechert is the legal counsel and Evercore Group is the financial advisor for the ad hoc group of lenders.
"At Home files for bankruptcy with lenders set to take control" was originally created and published by Retail Insight Network, a GlobalData owned brand.
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