Popular home goods chain files for bankruptcy due to ‘rapidly evolving trade environment'
Popular home goods chain At Home has filed for bankruptcy, with its chief executive citing a 'rapdily evolving trade environment' as President Trump's tariffs hammer the retail sector.
The Dallas-based chain, which boasts 260 stores across 40 states, said it would continue to operate as usual during the Chapter 11 bankruptcy process.
At Home, which is backed by private equity firm Hellman & Friedman, has entered into an agreement with its lenders that 'will eliminate substantially all' of its roughly $2 billion in debt and provide $200 million in new funding, the company said.
3 Popular home goods chain At Home has filed for bankruptcy.
UCG/Universal Images Group via Getty Images
CEO Brad Weston, who joined the company last year and previously ran Party City Holdings, blamed the chain's struggles on 'an increasingly dynamic and rapidly evolving trade environment as we navigate the impact of tariffs.'
The Chapter 11 process '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,' Weston added.
At Home did not immediately respond to The Post's request for comment.
The chain plans to close approximately 20 stores as part of the bankruptcy process, The Wall Street Journal recently reported. At Home did not announce store closures on Monday.
The home goods industry has been suffering from a slump in sales after consumer sentiment remained stubbornly low for months as Trump's trade war fueled uncertainty.
The Container Store, Bed Bath & Beyond and Big Lots have all filed for bankruptcy. Home Depot and Lowe's have also reported shaky earnings as customers hold off on home improvement projects.
Consumer sentiment bounced back in June as a 90-day tariff deal with China eased tensions, according to the University of Michigan's Surveys of Consumers.
3 A shopper browses garden decorations in an At Home store.
MediaNews Group via Getty Images
At Home, meanwhile, has faced liquidity constraints for months. It has roughly $17.3 million available under its asset-based lending facility, sources told Bloomberg in May.
Its $600 million first-lien term loan is trading at distressed levels – most recently quoted at just 38 cents on the dollar – as the retailer has been seeking to restructure its balance sheet, according to the Bloomberg report.
Trump's tariffs haven't helped the chain, which relies heavily on China for imports of furniture and home decor.
At Home started shifting its production away from China ahead of Trump's announcement in April, which levied taxes as high as 145% on Chinese goods.
3 A customer enters an At Home store in Queens, New York.
UCG/Universal Images Group via Getty Images
The president has since lowered those rates to 30% as part of a deal with China.
In May 2023, At Home enjoyed a liquidity boost when it raised $200 million through the sale of five-year senior secured notes and exchanged $442 million in unsecured bonds for toggle notes.
But it wasn't enough for the retailer to maintain revenue growth as customers pulled back on spending.
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