At Home Files Chapter 11 Bankruptcy, Restructures $2 Billion Debt Across US Stores

At Home, a home goods retailer with 260 stores across 40 states, has filed for Chapter 11 bankruptcy to restructure amid mounting financial pressures including roughly $2 billion in debt and tariff-related challenges tied to sourcing products primarily from China. The company has secured a restructuring support agreement with lenders that will eliminate nearly all its debt and provide $200 million in fresh capital to sustain operations during the bankruptcy process. CEO Brad Weston emphasized that this restructuring will improve the company's resilience and competitiveness amid a dynamic trade environment influenced by tariffs imposed under President Donald Trump's administration, which temporarily lowered tariffs on Chinese goods to 30%. The retailer plans to keep most stores open but expects to close about 20 locations initially, with more possible closures as it navigates bankruptcy. Industry experts note At Home’s challenges stem from high debt levels, weak differentiation, and stiff competition from rivals like IKEA and HomeGoods, alongside a broader slowdown in discretionary consumer spending impacting the home goods sector. The company has also been shifting some sourcing away from China to countries like India in response to tariff pressures.