Bankruptcies have become a familiar theme across industries, creating an alarming trend that S&P Global warns puts “2025 on track to be one of the busiest years for filings in more than a decade.”
However, one home goods retailer has persistently strived to turn its business around, and after months of financial turmoil, its strategy might actually be working.
At Home’s financial restructuring plan has been approved by the U.S. Bankruptcy Court for the District of Delaware, paving the way for its exit from bankruptcy in the coming months.
Under the plan, At Home will eliminate around $2 billion in funded debt, secure an asset-based loan of around $500, and emerge under the new ownership of Redwood Capital Management, LLC, Farallon Capital Management, L.L.C., and Anchorage Capital Advisors, L.P.
“Having received this approval, we are one step closer to emerging from our court-supervised process with a fully de-levered balance sheet, a more profitable operating model and new financial resources to invest in our strategic initiatives,” said At Home CEO Brad Weston in a press release.
Image source: Joe Raedle/Getty Images
At Home files for Chapter 11 bankruptcy and closes stores
Founded in 1979, At Home, previously known by loyal fans as Garden Ridge, is a home décor and furnishing retail chain. It was taken private in 2021 when Hellman & Friedman acquired it for $2.8 billion, removing its listing from the New York Stock Exchange.
However, four years later, the retailer had accumulated $2 billion in debt due to an uncertain macroeconomic environment and supply chain disruptions, which forced it to file for Chapter 11 bankruptcy in June 2025.
The newly imposed tariffs only worsened its situation. Since 90% of the retailer’s merchandise is sourced overseas, the trade policies would raise costs significantly, adding more burden to its already shaky finances.
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“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,” said At Home in the filings.
As part of the bankruptcy process, At Home secured $600 million in debtor-in-possession financing, which includes a $200 million capital infusion from most of its existing lenders and a roll-up of $400 million in senior secured debt. The retailer also closed 30 stores, leaving it with over 230 locations across 39 states.
At Home faces ongoing challenges
While At Home’s business has not fully recovered yet, trade tensions remain one of the most significant hurdles to overcome.
In late September, President Donald Trump revealed plans on Truth Social to impose a 50% tariff on all kitchen cabinets, bathroom vanities, and associated products, along with a 30% tariff on upholstered furniture beginning October 1. He claimed this move was necessary to protect National Security and the U.S. manufacturing process.
Despite the bankruptcy and tariff threats, At Home continues to try to run business as usual and keep customers engaged. It recently debuted a new home collection in collaboration with Real Simple at its stores, offering 270 items priced from $1.99 to $129.99.
This collaboration is timely, since demand has never been higher. The U.S. Department of Commerce data shows furniture sales grew 5.4% year-over-year, reaching $90.3 billion.
While tariffs are expected to raise costs, demand for home furnishings remains strong, a trend that At Home seems to be betting on to stabilize its business as it navigates tumultuous economic times.
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