At Home Files for Bankruptcy Amid Tariff Challenges
At Home, a popular home goods retailer with 260 stores across 40 U.S. states, has filed for bankruptcy, citing the backdrop of tariff increases and a slowdown in consumer spending. The Dallas-based company announced Monday that it had entered an agreement with its lenders that “will eliminate substantially all” of its roughly $2 billion in debt and provide $200 million in fresh funding to keep At Home operating while it navigates the Chapter 11 process.
At Home said it would continue to operate as usual, including fulfilling orders, paying vendors, and maintaining its loyalty program during the Chapter 11 process. However, the privately held company hinted that it might close some locations, saying that a “majority of our stores will remain open.”
Total Retail's Take: The home goods industry in which At Home operates in has been negatively impacted by a pullback in discretionary spending by American consumers. Consider the plights of At Home competitors The Container Store, Bed Bath & Beyond, and Big Lots, all of which have filed for bankruptcy in recent years. Couple that dynamic with a high level of debt on its balance sheet and the introduction of tariffs on product imports, most notably from China, and it's not a mystery as to why At Home was forced into this action. In order to survive going forward, At Home will need mitigate rising costs (e.g., tariffs) through enhanced engagement and loyalty from existing and new customers. That will require the home goods retailer to differentiate itself in a crowded space through innovative and unique merchandise, frictionless shopping experiences, transparent and value-focused pricing, and first-rate customer service.
