At Home Enters Bankruptcy Proceedings, 26 Locations Set to Close
By: Recently reported
In a significant development for the home decor retail sector, At Home, the well-known chain with over 200 outlets nationwide, has announced its decision to file for Chapter 11 bankruptcy protection. The company revealed this strategic move on Monday as part of an effort to restructure its financial obligations, which include a staggering $2 billion in debt.
The Plano, Texas-based retailer aims to secure an infusion of $200 million to facilitate its restructuring. According to court documents, it has been confirmed that 26 stores across various states will be closing down by the end of September, indicating a dramatic shift in the company’s operational landscape.
Background and Financial Challenges
Owned by Hellman & Friedman, At Home has faced mounting pressures over the past several months, largely attributed to rising tariffs impacting its supply chain. Following a missed interest payment on May 15, the retailer entered a forbearance agreement with its lenders, who currently hold over 95% of the company’s debt.
Brad Weston, the CEO of At Home, commented on the current climate, stating, “We are operating against the backdrop of an increasingly dynamic and rapidly evolving trade environment. The measures we are instituting will enhance our competitive stance in the marketplace as we adapt to ongoing volatility.” Weston expressed hope that these changes would bolster the company’s long-term resilience.
Historical Context
Originally launched in 1979 under the name Garden Ridge Pottery, the chain has grown significantly from its first store in Schertz, Texas, to approximately 260 outlets in 40 states today. It offers a diverse selection of home goods, including rugs, furniture, bedding, and kitchenware. However, internal financial issues have led the company to close six locations within the past year.
Market Concerns
According to analysts, the broader retail environment continues to be shaped by factors such as inflation and changing consumer behavior, which have exerted considerable pressure on At Home’s revenue streams. Neil Saunders, managing director of GlobalData, indicated in an email that diminishing consumer demand for home furnishings is partly due to low confidence levels and a sluggish housing market. He further stated that these market dynamics show no signs of reversing in the immediate future.
Details of the Closure
The company’s decision to downsize comes amidst a trend of financial distress in the retail sector, with other major retailers like The Container Store and Big Lots also filing for bankruptcy in recent times.
List of Stores Set to Close
| Store Address |
|---|
| 6135 Junction Blvd, Rego Park, NY 11374 |
| 300 Baychester Ave, Bronx, NY 10475 |
| 750 Newhall Dr, San Jose, CA 95110 |
| 2505 El Camino Real, Tustin, CA 92782 |
| 14585 Biscayne Blvd, North Miami, FL 33181 |
| 2200 Harbor Blvd, Costa Mesa, CA 92627 |
| 3795 E Foothills Blvd, Pasadena, CA 91107 |
| 1982 E 20th St, Chico, CA 95928 |
| 2820 Hwy 63 South, Rochester, MN 55904 |
| 6532 Towne Center Drive Suites A-B, Foothill Ranch, CA 92610 |
| 1001 E Sunset Drive, Bellingham, WA 98226 |
| 8320 Delta Shores Circle S., Sacramento, CA 95832 |
| 1361 NJ-35, Middletown Township, NJ 07748 |
| 2900 N Bellflower Blvd, Long Beach, CA 90815 |
| 720 Clairton Blvd, Pittsburgh, PA 15236 |
| 2530 Rudkin Road, Yakima, WA 98903 |
| 571 Boston Turnpike, Shrewsbury, MA 1545 |
| 5203 W War Memorial Dr, Peoria, IL 61615 |
| 8300 Sudley Rd., Manassas, VA 20109 |
| 461 Route 10 East, Ledgewood, NJ 07852 |
| 301 Nassau Park Blvd., Princeton, NJ 08540 |
| 300 Providence Highway, Dedham, MA 02026 |
| 905 S 24th Street W, Billings, MT 59102 |
| 19460 Compass Creek Pkwy, Leesburg, VA 20175 |
| 3201 North Mayfair Road, Wauwatosa, WI 53222 |
| 13180 S Cicero Avenue, Crestwood, IL 60445 |
As At Home navigates these challenging waters, it remains to be seen how the restructuring will unfold and how the company’s shifts will impact consumers and employees alike.
