Headquartered in Texas, At Home operates over 200 stores across 40 states. The company reportedly missed a critical interest payment on May 15 and has until June 30 to present a plan of action. As part of its bankruptcy plan, the retailer is expected to close around 20 underperforming locations, with the possibility of more closures as court proceedings progress.
At Home was acquired by private equity firm Hellman & Friedman in 2021 for $2.8 billion. Despite its expansive footprint and offerings ranging from $30 area rugs to $450 accent chairs, the brand has struggled to maintain consumer interest. Retail analyst Neil Saunders noted that the stores lack compelling design and are being outpaced by competitors like IKEA, HomeGoods, and Wayfair in terms of pricing and product selection.
Compounding the issue is At Home’s heavy reliance on Chinese suppliers. The Trump administration’s 30% tariffs on Chinese goods have significantly increased import costs, forcing the retailer to consider raising prices or incurring additional debt. While At Home has begun shifting sourcing to India, the transition is still in progress and faces its own trade barriers.
The retailer’s troubles reflect broader challenges in the home furnishings sector. After booming during pandemic lockdowns, the industry has cooled significantly as inflation pressures consumers to cut back on non-essential spending.
