In a move that underscores the volatility plaguing U.S. retail, At Home Group Inc.—the home décor giant once buoyed by the pandemic’s nesting trend—filed for Chapter 11 bankruptcy protection Monday, weighed down by nearly $2 billion in debt and battered by sudden shifts in U.S. trade policy.
The filing, made in a Delaware bankruptcy court, paints a picture of a retailer caught in a perfect storm: a highly leveraged balance sheet, inflationary freight costs, and a chaotic tariff landscape that turned supply chains into financial minefields.
“Newly imposed tariffs and the whiplash of ongoing U.S. trade negotiations intensified our liquidity crisis,” said CFO Jeremy Aguilar in a court declaration, noting the company’s reliance on foreign inventory left it deeply exposed.
$600 Million Lifeline and a Debt Detox
In a bold attempt to turn the tide, At Home announced a restructuring support agreement backed by 96% of its first-lien lenders. The plan includes:
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$600 million in debtor-in-possession (DIP) financing
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A conversion of lender debt to equity upon emergence from bankruptcy
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$200 million in new funding to keep operations humming and fund the turnaround
“This restructuring will de-lever our balance sheet and fortify our position in an unpredictable marketplace,” said CEO Brad Weston.
The group of post-bankruptcy owners includes heavyweights like Redwood Capital Management, Fallon Capital, and Anchorage Capital Advisors.
