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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:

• $600 million in debtor-in-possession (DIP) financing

• A conversion of lender debt to equity upon emergence from bankruptcy

• $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.

Operations Ongoing—For Now

The company assured customers and employees that all 260 stores in 40 states will remain open during proceedings. More than 7,000 employees work across the company’s retail, corporate, and distribution operations.

Founded in 1979 as Garden Ridge Pottery, At Home is no stranger to bankruptcy court. It first filed in 2004, then emerged and rebranded. It later went public in 2016 before being taken private in 2021 by Hellman & Friedman—just as the COVID-fueled home décor boom reached its peak.

A Fall From Pandemic-Driven Grace

Aguilar’s filings detail a dramatic descent. While the pandemic era supercharged sales, post-COVID inflation, freight spikes, and tariff risks crippled margins. In some cases, shipping costs eclipsed the value of the goods themselves.

Despite raising $200 million in 2023 and slashing costs through executive reshuffles and loan negotiations, the company couldn’t outpace the compounding economic drag.

The restructuring agreement was nearly in place by March, but incoming protectionist policies—largely stemming from Trump-era tariff echoes—pushed the firm over the edge.

Bankruptcy Proceedings and Legal Teams in Motion

The case landed before U.S. Bankruptcy Judge J. Kate Stickles, who will preside over Tuesday’s first-day hearing in Wilmington. Key motions include the approval of DIP financing: $200 million in new liquidity and a roll-up of $400 million in existing secured obligations.

Legal representation includes:

• Young Conaway Stargatt & Taylor LLP (Robert S. Brady, Edwin J. Harron, Joseph M. Mulvihill)

• Kirkland & Ellis LLP (Nicole L. Greenblatt, Matthew C. Fagen, Elizabeth H. Jones)