Home decor retail giant reportedly readies bankruptcy filing imminently.
At Home Group Inc., a leading home decor retailer based in Plano, Texas, is reportedly preparing to file for Chapter 11 bankruptcy protection in the coming weeks as it tries to address financial challenges. The company, which operates over 260 stores across 40 states, has been grappling with a substantial debt of nearly $2 billion, exacerbated by the effects of U.S. tariffs and the global trade war.
Bloomberg News reported that the company, owned by private equity firm Hellman & Friedman, has been facing a shortage of cash in recent months. The tariffs have presented a significant hurdle for the retailer, which sources most of its products from overseas, primarily from China.
On May 15, At Home missed an interest payment, and on May 23, it entered a forbearance agreement with its lenders. This agreement, which temporarily suspends payments, runs until June 30, according to sources familiar with the matter.
"At Home is actively collaborating with our financial stakeholders and have put forbearance agreements in place with respect to certain interest payments under the company's debt instruments," a spokesperson for At Home Group Inc. told Bloomberg. "These agreements provide us flexibility as we continue to take steps to position At Home for near and long-term success."
At Home has been searching for new overseas suppliers as the company tries to shift away from China amid concerns about tariffs. Earlier this month, the company announced it had appointed Brad Weston as its new CEO, effective June 3. Weston most recently served as CEO of Party City Holdings Inc.
While the details are not fully known, the bankruptcy filing is expected to provide At Home with a chance to restructure its finances and navigate a path toward stability. Stores are likely to continue operating during this process.
Hellman & Friedman declined to comment. At Home Group Inc. and PJT Partners Inc. did not immediately respond to FOX Business' request for comment.
- In an attempt to resolve financial issues, At Home Group Inc. is seeking to restructure its debts, a move that could be facilitated by a Chapter 11 bankruptcy filing, providing a chance for the asset-rich home decor retailer to navigate a path towards stability.
- The toll of debt and the impact of tariffs have been evident in At Home's financial business, with the retailer fishing for new overseas suppliers to diminish its reliance on China, as it strives to secure its standing in markets amidst ongoing trade conflicts.
