In a turbulent turn for one of America’s largest home decor chains, At Home Group Inc. is reportedly on the verge of filing for Chapter 11 bankruptcy, according to sources cited by Bloomberg. The Texas-headquartered company, which operates over 250 stores across 40 states, is scrambling to shore up liquidity amid mounting financial strain.
Backed by private equity powerhouse Hellman & Friedman, At Home has been navigating a severe cash shortage in recent months, a situation made worse by U.S. tariffs and the ongoing global trade war. The retailer missed an interest payment on May 15 and, shortly after, entered a forbearance agreement with lenders on May 23. That agreement, which halts debt obligations temporarily, runs through June 30.
Tariffs and Tight Cash Flow Put Pressure on the Brand
The fallout from U.S. trade policies has dealt a sharp blow to At Home’s operations. Like many American retailers, the company had heavily relied on Chinese suppliers, making it especially vulnerable to the tariff hikes.
“At Home is actively collaborating with our financial stakeholders and have put forbearance agreements in place with respect to certain interest payments under the company’s debt instruments,” a spokesperson for At Home Group Inc. told Bloomberg.
“These agreements provide us flexibility as we continue to take steps to position At Home for near and long-term success.”
The company has reportedly been working to diversify its supply chain, seeking out new overseas vendors in an effort to reduce dependence on China, a strategic move aimed at offsetting tariff-related costs.
Bond Values Plunge as Investors Flee
Investor confidence in the retailer appears to be slipping fast. According to Bloomberg, At Home’s first lien bond due in 2028 traded at just 26.5 cents on the dollar as of May 8th, a sharp decline from 41.25 cents in early January. Meanwhile, insiders say the company has just $17.3 million left under its asset-based lending facility, not nearly enough to weather a prolonged storm without restructuring.
A New CEO Takes the Helm Amid Crisis
In a significant leadership shake-up, At Home recently announced Brad Weston as its new chief executive, effective June 3. Weston brings a retail-heavy résumé, having most recently served as CEO of Party City Holdings Inc.
“Earlier this month, At Home Group Inc. announced it had appointed Brad Weston as its new CEO, effective June 3. Weston most recently served as CEO of Party City Holdings Inc.”
Whether Weston can steer the struggling retailer through this crisis remains to be seen, but his appointment signals the company’s intent to course-correct under experienced leadership.
Silence from the Boardroom
Hellman & Friedman, which acquired At Home in 2021 in a deal valued around $2.8 billion, has so far declined to comment. Both At Home Group Inc. and its financial advisor PJT Partners Inc. also failed to respond.
A Sign of Broader Retail Trouble?
At Home’s predicament echoes a growing number of retailers reeling from the ripple effects of inflation, supply chain disruption, and tariff burdens. Earlier this year, Macy’s and other major chains warned of looming price hikes tied to trade tensions highlighting just how widespread the pressure has become.
With bankruptcy seemingly imminent, the future of At Home, once a favorite for budget-friendly home decor, now hangs in the balance.
