At Home Files Chapter 11 Bankruptcy Amid Tariffs, Debt, and Slowing Sales, Wiping Out $2 Billion in Debt
Dallas-based home décor chain At Home has filed for Chapter 11 bankruptcy as it struggles with rising tariffs, a shaky retail landscape, and massive debt. The company, which operates 260 stores across 40 states, says it has reached a deal with lenders to eliminate nearly all of its $2 billion debt and secure $200 million in new funding to keep operations running during the bankruptcy process.
CEO Cites Tariffs and Trade Instability
“At Home is operating against the backdrop of an increasingly dynamic and rapidly evolving trade environment,” said CEO Brad Weston, who joined the company last year. Weston noted that tariff changes, especially on imports from China, have created uncertainty and hurt competitiveness. Tariffs as high as 145% were recently negotiated down to 30%, but the damage for import-heavy retailers like At Home has already been done.
Consumers Spending Less on Home Goods
The bankruptcy filing follows a broader trend across the home retail sector. With Americans pulling back on discretionary spending, major retailers like The Container Store, Bed Bath & Beyond, and Big Lots have also filed for bankruptcy in recent years.
The shift in consumer habits has hit At Home hard, especially as shoppers seek out better deals or more engaging retail experiences elsewhere.
Analysts Say Debt and Weak Branding Are Core Issues
According to Neil Saunders, managing director at GlobalData, At Home’s real problem is less about tariffs and more about its “extensive debt” and “weak proposition.”
“This was not sustainable,” Saunders said. “Its elimination under Chapter 11 will provide a more stable basis on which the company can operate.”
He also criticized the brand’s lack of inspiration, saying it fails to stand out against rivals like Ikea and Wayfair. “There is way too little inspiration and not nearly enough excitement to draw people into the stores,” Saunders wrote.
Stores Remain Open—For Now
Despite the filing, At Home says it plans to keep the majority of its stores open and continue fulfilling orders, paying vendors, and honoring its loyalty program. However, the company acknowledged potential closures, and The Wall Street Journal reports that about 20 locations may shut down.
Looking ahead, Weston said the company plans to emerge from Chapter 11 with “new owners and a meaningfully strengthened balance sheet.”
