A home decor store is reportedly shutting down locations as it struggles with President Donald Trump’s tariffs.
At Home, the retail chain headquartered in Texas with 200 stores across the country, is reportedly on the verge of filing for Chapter 11 bankruptcy protection in the near future, according to several sources.
This move will involve the closure of about 20 initial stores, with the potential for more locations to be targeted as the legal proceedings progress.
At Home 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 physical stores like IKEA and HomeGoods and online brands like Wayfair, entered private equity ownership in 2021.
Hellman & Friedman acquired At Home for $2.8 billion.
The chain sells low and mid-tier decor from 250 stores 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.
At Home, a decor retailer with over 200 stores in 40 states, is reportedly looking into a bankruptcy filing
“They have accumulated excessive debt, their store offerings lack appeal, and they are losing out on competitive pricing and intriguing selections to rivals such as IKEA and HomeGoods,” Saunders commented.
He added that the company could look to close even more underperforming stores in bankruptcy, but cautioned: ‘This remains to be seen.’
Bankruptcy rumors started 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 negotiating with US officials to remove a currently-paused 26 percent tariff.
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
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 inflation, have pulled back from discretionary spending.
‘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.
Brad Weston, CEO of At Home, which is considering filing for Chapter 11 bankruptcy
‘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 Flooring, and The Container Store have all filed for Chapter 11 protection.
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 respond to a request for comment.
