(June 17, 2025) — After weeks of mounting speculation, Plano-based home décor retailer At Home officially filed for Chapter 11 bankruptcy protection on Monday, as the company grapples with a heavy debt burden, vendor payment disruptions, and sharply deteriorating liquidity.
The filing comes as no surprise to industry observers. Reports in recent weeks suggested a bankruptcy was imminent, with insiders noting that At Home had stopped paying certain vendors, entered forbearance with creditors, and begun seeking lease concessions from landlords. As of today, the company confirmed it will pursue a court-supervised restructuring while keeping most of its 260+ stores open.
Cracks in the Foundation
Trouble became public on May 15, when At Home missed a key interest payment on its $200 million 11.5% senior secured notes due 2028. This triggered concern among bondholders and rating agencies. The company entered into a forbearance agreement with lenders on May 23, which runs through June 30.
At Home’s audited financials for fiscal year ending January 25, 2025 revealed severe liquidity concerns, calling into question the company's ability to continue as a going concern. At that time, At Home had just $14 million in cash and only $17 million available under its $675 million asset-based credit facility. These conditions, coupled with reports of unpaid vendors, accelerated discussions around a potential restructuring.
Closing Stores and Cutting Debt
As part of the restructuring bankruptcy plan, At Home will:
- Close 20–26 underperforming stores initially. Earlier rumors placed that number as high as 35.
- Restructure nearly $2 billion in debt, which had been trading at distressed levels.
- Secure $200 million in debtor-in-possession (DIP) financing to fund operations during the process.
The company emphasized that the majority of stores will remain open and will continue serving customers both in-store and online. Gift cards, loyalty rewards, and deliveries will not be affected, per the company.
“We are taking decisive steps to restructure our business, improve our financial foundation, and focus on profitable growth,” said CEO Lee Bird. “This process gives us the runway we need to protect our associates, serve our customers, and reposition At Home for a stronger future.”
What’s Driving the Collapse?
At Home’s bankruptcy reflects a broader set of challenges hitting big-box home retailers. Analysts point to:
- Soft consumer demand for non-essential home furnishings in 2025.
- Increased tariffs on Chinese imports driving up costs.
- A saturated store footprint with high fixed lease obligations.
- Heavy reliance on debt, including the now-defaulted 2028 notes.
These headwinds proved too great to overcome, particularly as At Home struggled to maintain cash flow and vendor relationships.
Path Forward
Under the restructuring agreement, At Home’s lender group will assume ownership of the company upon completion of the process. The company aims to emerge from bankruptcy later this year with a significantly improved balance sheet and more flexible real estate footprint.
As part of its Chapter 11 bankruptcy case in the U.S. Bankruptcy Court for the District of Delaware, At Home Group identified 26 of its 260 stores that it plans to close.
Of the stores identified, eight planned closures are in California; three are in New Jersey; two each are in New York, Washington, Massachusetts, Illinois, and Virginia; with a single store each in Florida, Minnesota, Pennsylvania, Montana, and Wisconsin. It reserved the possibility of closing more stores as the case continues.