At Home files bankruptcy after debt, tariffs and slumping consumer spending

At Home, a popular home goods store chain, has filed for bankruptcy due to money problems caused by high tariffs and people spending less money, according to CNN reporting. The Dallas-based company operates 260 stores in 40 different states across America. The store sells furniture, rugs, and other items people use to decorate their homes. At Home announced on Monday that it had made a deal with the companies that lent it money, which will get rid of almost all of the company's huge debt of about $2 billion. The agreement also gives At Home $200 million in new money to keep running while it goes through the bankruptcy process. 

Brad Weston, who became the company's top boss last year, explained that the business is dealing with big changes in trade rules and tariff costs that make it harder to compete. CNN's coverage highlighted how American businesses are struggling with uncertainty about tariffs, especially on products from China, where At Home gets many of its items.

The retail chain started voluntary Chapter 11 bankruptcy proceedings in a Delaware court to reorganize its finances, as detailed by Katu news coverage. Chapter 11 bankruptcy allows companies to keep operating while they fix their money problems and pay back what they owe. At Home promised customers that nothing would change during this process—they will still fill orders, pay their workers and suppliers, and keep their customer loyalty program running. 

The company reassured shoppers that most of their stores will stay open for business as usual; however, Katu reported that about 20 store locations might close down permanently. After the bankruptcy process ends, At Home plans to have new owners and a much healthier financial situation. The home goods industry has been hit hard recently, with other big stores like Big Lots also having to file for bankruptcy because fewer people are buying furniture and home decorations.

At Home will shut down 26 stores that are not making enough money by Tuesday, September 30, according to USA Today's investigation into court documents. The stores scheduled to close are spread across the country from California to New York, including locations in major cities and smaller towns. Court papers show that rising costs for borrowing money, high prices for goods, and expensive tariffs on imported products forced the company into bankruptcy. 

At Home had already closed six stores in the past year before this latest round of closures. The court documents explain that running physical stores costs a lot of money, and many At Home locations are not performing well enough to stay profitable. 

According to a news release on Business Wire, the ownership of the company will transfer to a group of investment companies based in New York City and San Francisco. This bankruptcy follows a trend of other major retailers like Joann Fabrics, Kohl's, JCPenney, Macy's, and Party City also facing serious financial troubles this year.