Another home decor retailer is teetering on the brink of bankruptcy.
At Home, the Texas-based home chain with 200 stores nationwide, is preparing to file for Chapter 11 protection in the coming weeks, according toBloomberg.
The company reportedly missed a critical interest payment on May 15. It has until June 30 to chart a path forward, which may include bankruptcy.
The retailer, a competitor to online brands like Wayfair, entered private equity ownership in 2021 when Hellman & Friedman acquired it for $2.8 billion.
At Home sells low- and mid-tier decor across 40 states, with products ranging from $30 area rugs to $450 accent chairs.
But the products have failed to capture consumer imaginations, according to Neil Saunders, managing director and retail expert at GlobalData.
‘They have way too much debt, their stores are not particularly interesting, and they are being beaten on price and interesting assortments by chains like IKEA and HomeGoods,’ Saunder said.
He added that the company could look to close some of its underperforming stores if it files for bankruptcy, but cautioned: ‘This remains to be seen.’
At Home, a decor retailer with over 200 stores in 40 states, is reportedly looking into a bankruptcy filing
Bankruptcy rumorsstarted swirling around the brand in mid-April,when reports emerged that the business was mired in more than $2 billion in debt and tangled in the fallout of President Donald Trump’s tariff regime.
At Home sources most of its inventory from China. Trump’s policies could force the company to take on even more debt — or raise prices on already price-sensitive products.
Right now, products made in China face a 30 percent tariff rate.
At Home has been trying to pivot away from Chinese suppliers since late 2023, Bloomberg noted, with recent efforts to forge relationships with manufacturers in India.
But that shift takes time, and retail experts have long warned that brands are likely to pass rising costs along.
India is currently negotiating with US officials to remove a currently-paused 26 percent tariff.
At Home isn’t the only struggling home retailer.
Home improvement retailers saw a pandemic-era boom between 2020 and 2021, when lockdowns inspired a wave of home redecoration.
But shoppers,worn down by years of inflationhave pulled back from discretionary spending.
Home decor and furniture sales, which spiked during pandemic lockdowns in 2020, have cooled down as consumers battle inflation
Analysts told Daily Mail that the bankruptcies can lead to short-term bargain opportunities for home products – but they warn prices are likely to rise
Meanwhile, furniture brands that have focused on modularity and low pricing, like IKEA, received praise for their consistent consumer interest
‘Although inflation has been easing, overall prices are still significantly higher than pre-pandemic levels,’Tim Hynes, Debtwire’s global head of credit research, told DailyMail.com.
‘There is a notable shift away from discretionary goods, such as home furnishings, towards essential items and experiences.’
That shift has contributed to a wave of bankruptcies across the industry.
Since 2022, Bed Bath and Beyond, Christmas Tree Shops, Bargain Hunt, Conn’s, LL Flooringand The Container Storehave all filed for Chapter 11 protection.
Brad Weston, CEO of At Home, which is considering filing for Chapter 11 bankruptcy
LL Flooring (formerly known as Lumber Liquidators) and The Container Store have since exited bankruptcy proceedings. The rest shuttered their physical locations entirely.
Hynes noted that if At Home follows suit, consumers could see short-term gains in the form of steeper promotions and discounted merchandise.
But in the long run, Trump’s tariff policies could keep costs elevated for both businesses and shoppers.
‘While some supply chain issues have stabilized, geopolitical risks and the potential for increased tariffs on imported goods introduce uncertainty,’ Hynes added.
‘Retailers like At Home, which rely heavily on imported products, could face higher procurement costs and potential disruptions if tariffs are implemented.’
Hellman & Friedman declined to comment on this story. At Home didn’t immediately respond to a request for comment.
