Popular home decor store announces mass closures

Daily Mail​

14 hours ago

A home decor store is reportedly shutting down locations as it struggles with President Donald Trump's tariffs. At Home, the Texas-based home chain with 200 stores nationwide, is preparing to file for Chapter 11 protection in the coming days, according to multiple reports.
The filing will correspond with around 20 store initial store closures. More locations could be on the chopping block as the company makes its way through the courts. At Home reportedly missed a critical interest payment on May 15. It has until June 30 to chart a path forward, which may include bankruptcy. The retailer, a competitor to physical stores like IKEA and HomeGoods and online brands like Wayfair, entered private equity ownership in 2021.
Hellman & Friedman acquired At Home for $2.8 billion. The chain sells low and mid-tier decor from 250 stores across 40 states, with products ranging from $30 area rugs to $450 accent chairs. But the products have failed to capture consumer imaginations, according to Neil Saunders, managing director and retail expert at GlobalData.
'They have way too much debt, their stores are not particularly interesting, and they are being beaten on price and interesting assortments by chains like IKEA and HomeGoods,' Saunders said. He added that the company could look to close even more underperforming stores in bankruptcy, but cautioned: 'This remains to be seen.' Bankruptcy rumors started swirling around the brand in mid-April, when reports emerged that the business was mired in more than $2 billion in debt and tangled in the fallout of President Donald Trump's tariff regime.
At Home sources most of its inventory from China. Trump's policies could force the company to take on even more debt — or raise prices on already price-sensitive products. Right now, products made in China face a 30 percent tariff rate. At Home has been trying to pivot away from Chinese suppliers since late 2023, Bloomberg noted, with recent efforts to forge relationships with manufacturers in India. But that shift takes time, and retail experts have long warned that brands are likely to pass rising costs along. India is negotiating with US officials to remove a currently-paused 26 percent tariff. At Home isn't the only struggling home retailer.
Home improvement retailers saw a pandemic-era boom between 2020 and 2021, when lockdowns inspired a wave of home redecoration. But shoppers, worn down by years of inflation , have pulled back from discretionary spending. 'Although inflation has been easing, overall prices are still significantly higher than pre-pandemic levels,' Tim Hynes, Debtwire's global head of credit research, told DailyMail.com. 'There is a notable shift away from discretionary goods, such as home furnishings, towards essential items and experiences.'
That shift has contributed to a wave of bankruptcies across the industry. Since 2022, Bed Bath and Beyond, Christmas Tree Shops, Bargain Huns, Conn's LL Flooring, and The Container Store have all filed for Chapter 11 protection. LL Flooring (formerly known as Lumber Liquidators) and The Container Store have since exited bankruptcy proceedings. The rest shuttered their physical locations entirely.
Hynes noted that if At Home follows suit, consumers could see short-term gains in the form of steeper promotions and discounted merchandise. But in the long run, Trump's tariff policies could keep costs elevated for both businesses and shoppers.