At Home set to emerge from bankruptcy with most of its stores

Dive Brief:

At Home’s reorganization plan has been approved by the U.S. Bankruptcy Court for the District of Delaware. The furniture retailer will eliminate almost all of its nearly $2 billion in funded debt and have access to an asset-based loan of about $500 million, the company said Wednesday.

In the coming weeks the retailer will emerge from Chapter 11 owned by a group of its lenders including investment firms Redwood Capital Management, Farallon Capital Management and Anchorage Capital Advisors. At Home has been privately owned since 2021, when it was acquired by private equity firm Hellman & Friedman for $2.8 billion.

The retailer filed for bankruptcy in June, citing tariffs and consumer uncertainty. At Home sources about 90% of its products from overseas, and the Trump administration announced new tariffs for the category last month.

Dive Insight:

At Home is emerging from Chapter 11 with a lighter debt load and most of its fleet intact. The retailer will have closed about 30 stores, but still runs more than 230 stores in 39 states.

“As we move forward with a fully optimized store fleet, team members across all of our At Home stores are helping customers prepare for Halloween and the seasonal transition to Fall,” At Home CEO Brad Weston said in a statement. “We are gearing up for the upcoming Holiday season and look forward to continuing to welcome and serve customers in our stores and online.”

U.S. trade policy is not making this easy. President Trump in late September posted plans for a 30% tariff on upholstered furniture as well as levies on other home goods. Furniture sales grew nearly 3% in August, less than in July but still a sign that the category has recovered from its post-pandemic slowdown, according to emailed comments last month from GlobalData Managing Director Neil Saunders.

“That said, the consumer is still concerned about tariffs and is pulling forward some spend,” he said. “This could prove to be prudent given that special tariffs for furniture have been the subject of recent policy discussions at the White House.”

At Home has continued to operate as close to usual as possible during its bankruptcy. Last week Real Simple launched an exclusive home collection there, with hundreds of products, including items for organizing, closet, kitchen, entertaining and laundry. But, given that the forces that sent it to bankruptcy court are still in play, the retailer may need to rethink its business model, Saunders said earlier this year.