A Beloved Home Goods Retail Chain Is Going Into Bankruptcy, But Are They Closing Stores?

Continuing the retail apocalypse that has defined the post-COVID pandemic era, in late-May 2025, Bloomberg broke the news that At Home Group Inc. is planning to file for Chapter 11 bankruptcy protection within the next few weeks. For those not familiar, Texas-based At Home Group Inc. operates the eponymous chain of At Home stores which sells furniture, home decorations, rugs, and more. 

Reportedly, the retailer has been battling a cash shortage for several months, combined with challenges resulting from the Trump Administration's ever-changing tariff policies. As a result, At Home missed an interest payment on its debt in mid-May and has since entered an agreement with lenders to postpone debt repayment until June 30, 2025. A spokesperson from the retailer told Bloomberg, "These agreements provide us flexibility as we continue to take steps to position At Home for near and long-term success."

However, investors remain skeptical, with some of At Home's bonds trading at a discount equal to approximately 26% (or 74% off) of their face value. The impact on the brand's almost 300 brick and mortar locations remains to be seen.

Because At Home obtains a major portion of its inventory from overseas, it's highly sensitive to the trade war taking place between the U.S. and worldwide centers of production, like China — where the U.S. imports over 30% of its furniture from. Although the tariff situation is constantly in a state of flux, At Home is reported to be pivoting away from made-in-China products in favor of goods from other countries which may carry lower tariffs once the dust settles – like India. 

Currently, the home-décor retailer operates more than 260 stores spread across 40 states with an average footprint of 100,000 square feet per location. So far, At Home has been silent about whether it intends to close any store locations in the wake of its financial struggles. It's largely expected that the company's future will be more clear after its official Chapter 11 bankruptcy protection filing. Closing and/or selling underperforming locations will certainly be an option to consider, although alternative debt repayment plans will no doubt be explored as well.

Earlier this year, At Home competitor Kirkland announced its own wave of store closings. The Tennessee-based home goods retailer opted to close about 6% of its 317 U.S. locations in 35 states, which equated to around 19 to 20 unprofitable locations. On a broader level, other retailers declaring bankruptcy or shuttering stores include Big Lots, Kohl's, Joann Fabrics, Macy's, and many others.

However, some retailers were struggling long before 'Liberation Day' and Trump's mass tariffs were announced. As early as April, the Wall Street Journal reported that At Home executives were in the process of negotiating $2 billion worth of debt with various creditors and landlords as a precursor to bankruptcy.

At Home Group Inc. is currently owned by a private-equity firm called Hellman & Friedman who acquired the retailer in 2021. The specifics of that deal placed a $2.8 billion valuation on the business at that point in time. Coinciding with the imminent bankruptcy news, a new Chief Executive Officer is taking over At Home, effective June 3.