Home Goods rival lists store closures across six states months after filing Chapter 11 bankruptcy

Daily Mail​

4 days ago

A struggling furnishing chain is shutting down six additional stores as it fights its way out of bankruptcy.
At Home, the Texas-based home decor chain with 200 stores nationwide, will now shut down at least 32 locations, likely by September.
In June, the company said it put 20 stores on the chopping block as it first entered Chapter 11 bankruptcy.
An additional six stores have now been added to the closing list.
The retailer — a competitor to physical stores like IKEA and HomeGoods plus online brands like Wayfair — is best known for its low and mid-tier decor, like $30 area rugs to $450 accent chairs.
But, like many other brick-and-mortar furnishing chains, At Home faced several headwinds, including flagging US home sales, expensive workforces, and increased online competition.
Brad Weston, the company's CEO, pointed his finger at President Donald Trump's signature economic policy during the company's initial bankruptcy filing.
'[We] are operating against the backdrop of an increasingly dynamic and rapidly evolving trade environment as we navigate the impact of tariffs,' Weston said.
But independent analysts have said At Home's problems were mounting beyond federal policy.
Between 16 and 35 percent of the company's bills were 'overdue' before the bankruptcy filing, according to analysis by Creditsafe.
Tim Hynes, Debtwire's global head of credit research, also said the brand was impacted as consumers cut discretionary spending to combat high prices.
'Consumers are feeling the pinch from lingering inflation and high interest rates,' Hynes said.
'Many have depleted savings or accumulated credit card debt, leading to more cautious and value-driven spending.'
Meanwhile, retail experts who had recently visited At Home locations weren't impressed with the store's offerings.
'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,' Neil Saunders, managing director at GlobalData, said.
He added that the company could look to close even more underperforming stores in bankruptcy, but cautioned: 'This remains to be seen.'
Analysts told DailyMail.com that inflation, trade tensions, and boring products have contributed to a major furnishing chain's bankruptcy
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, 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.
Plus, Indian officials are currently engaged in a heated trade battle with US negotiators over the Asian country's use of Russian oil.
Still, At Home joins a list of home furnishing retailers that have gone bankrupt in the past three years.
Since 2022, Big Lots, True Value, Bed Bath & Beyond, Christmas Tree Shops, Bargain Hunt, Conn's, LL Flooring, and The Container Store have all filed for Chapter 11 protection.