At Home has filed for Chapter 11 bankruptcy protection.
Home furnishings retailer At Home has filed for Chapter 11 bankruptcy protection after entering a restructuring agreement with lenders holding nearly all of its debt.
The retailer’s 260 stores across 40 states remain open. At Home announced its bankruptcy filing early Monday, June 16.
According to the company, the prearranged financial restructuring will eliminate substantially all of its nearly $2 billion in funded debt and provide a $200 million capital infusion. This will support At Home through its restructuring process and beyond.
Under the agreement, following the restructuring’s completion, the company expects ownership of At Home to transition to the lenders supporting the restructuring agreement and providing new capital.
In connection with the bankruptcy filing, At Home is entering an agreement for $600 million in debtor-in-possession (DIP) financing. This includes the $200 million capital infusion from certain existing lenders and a “roll up” of $400 million of existing senior secured debt.
The company’s existing lenders and ABL lenders have also consented to the company’s use of cash collateral during these Chapter 11 cases. Upon court approval, the company expects this financing, along with cash generated from At Home’s ongoing operations, will provide sufficient liquidity to support the business during the court-supervised process.
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