At Home Group Files Chapter 11 With $2B Debt Restructuring

At Home Group, a Texas-based home décor retailer operating over 200 stores, has filed for Chapter 11 bankruptcy as part of a restructuring deal with lenders holding more than 95% of its nearly $2 billion funded debt. The agreement includes eliminating substantially all the debt and securing about $200 million in new capital, along with $600 million in debtor-in-possession financing, to support ongoing operations. The company plans to initially close around 20 underperforming stores, with potential for more closures depending on restructuring outcomes. At Home's financial struggles are attributed to heavy debt burdens, increased import costs due to tariffs imposed under President Trump's administration, and supply chain disruptions, given its reliance on Chinese suppliers amidst ongoing trade challenges. Despite being acquired by private equity firm Hellman & Friedman in 2021, At Home has faced stiff competition from retailers like IKEA, HomeGoods, and Wayfair, compounded by a cooling home furnishings market following pandemic-driven demand surges. The restructuring aims to strengthen At Home's financial foundation and position it for long-term success amid broader industry pressures.