Furniture retailer At Home has officially filed for Chapter 11 bankruptcy after reports of the furniture store struggling to stay afloat surfaced this year.
According to the filing, the company failed to successfully operate due to the additional costs from tariffs which it failed to mitigate and a slowdown in spending due to falling consumer sentiment.
The filing stated: “While At Home has had to deal with tariffs for some time given the nature of its business, the volatility of the current tariff environment came at a time when the management team was working to address the company’s existing issues.
“These newly imposed tariffs and the uncertainty of ongoing U.S. trade negotiations intensified the financial pressure on the company, accelerating the need for a comprehensive solution.”
At Home has made a deal with its lenders that will eliminate its nearly $2 billion in debt and offer the company $200 million in capital to restructure amid its bankruptcy.
Brad Weston, CEO of At Home, commented: “We are operating against the backdrop of an increasingly dynamic and rapidly evolving trade environment as we navigate the impact of tariffs.
The steps we are taking today to fully de-lever 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.”
As part of the agreement, the retailer secured a total of $600 million in debtor-in-possession financing to assist with keeping its operations afloat.
The privately operated furniture retailer may downsize its current fleet after it emerges from bankruptcy.
Tariffs have created mounting pressure for retailers in the US, with businesses having to shift their strategies and supply chains to stay afloat.
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