BREAKING NEWS Popular IKEA rival declares bankruptcy… as CEO blames Trump's tariffs

Daily Mail​

8 hours ago

A popular home furnishings retailer has filed for bankruptcy. The CEO said President Donald Trump's signature economic policy was a major contributing factor.
At Home, the Texas-based home chain with 200 stores nationwide, filed for Chapter 11 protection on Monday after weeks of bankruptcy speculation.
'We are operating against the backdrop of an increasingly dynamic and rapidly evolving trade environment as we navigate the impact of tariffs,' Brad Weston, the company's CEO, said.
Weston added that the company will continue to operate most of its stores after the filing, but bankruptcy will 'increase the resilience of our business for the long term.'
Bankruptcy protection bring the end of about 20 store locations, according to recent reporting.
More locations could be on the chopping block as the company makes its way through the courts.
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.'
The retailer entered private equity ownership in 2021 in a $2.8 billion deal with Hellman & Friedman.
At Home reportedly missed a critical interest payment on May 15, according to the Wall Street Journal.
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.
Meanwhile, furniture brands that have focused on modularity and low pricing, like IKEA, received praise for their consistent consumer interest (stock image)
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.
Housing improvement retailers like At Home 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 Hunt, 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 At Home's bankruptcy could bring short-term promotions and discounts to consumers.
But in the long run, Trump's tariff policies could keep costs elevated for both businesses and shoppers.
'While some supply chain issues have stabilized, geopolitical risks and the potential for increased tariffs on imported goods introduce uncertainty,' Hynes added.
'Retailers like At Home, which rely heavily on imported products, could face higher procurement costs and potential disruptions if tariffs are implemented.'