Home Furnishings Retailer At Home Seeks 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.
"We are pleased to have reached this agreement with our lenders, which represents a critical and positive advancement of our work to best position At Home for the future," said Brad Weston, CEO of At Home. "Over the past several months, we’ve taken deliberate steps to strengthen the foundation of our business, sharpening our focus, elevating our customer value proposition, and driving operational discipline. These efforts are aimed at delivering sustained sales growth, optimizing our inventory management, improving efficiency, and enhancing overall profitability."
Weston said that while the company has made "significant progress" in advancing its initiatives, the retailer is operating against the backdrop of an increasingly dynamic and rapidly evolving trade environment as it navigates the impact of tariffs.
"The steps we are taking today to fully deleverage our balance sheet will improve our ability to compete in the marketplace in the face of continued volatility and increase the resilience of our business for the long term," he said.
At Home also filed a number of customary "first-day" motions with the court to maintain business operations, facilitate the efficient administration of the Chapter 11 cases, and uphold its go-forward commitments to its stakeholders, including the continued payment of team member wages and benefits without interruption. At Home fully expects to pay vendors and suppliers in full under normal terms for goods and services provided after the filing date. The company expects to receive court approval for these requests soon.
Additional information regarding At Home’s court-supervised process is available at AtHomeRestructuring.com.