Home product specialty retailer At Home filed for Chapter 11 bankruptcy protection in the United States District of Delaware after having entered into a restructuring support agreement with lenders holding more than 95% of the company’s debt.
The company cited recent marketplace conditions in which consumers have been wary of discretionary purchasing, as well as uncertainties generated by tariffs. According to filings with the court, At Home plans to shutter 26 stores scattered across the U.S. with the largest number, eight, closing in California.
A prearranged financial restructuring will eliminate substantially all of the company’s almost $2 billion in funded debt and provide a capital infusion of $200 million to support the company through its restructuring process and beyond. At Home has entered into an agreement for $600 million in debtor-in-possession (DIP) financing, which includes the $200 million capital infusion from its existing lenders and a rollup of $400 million of existing senior secured debt.
Under the restructuring support agreement (RSA), following the consummation of the company’s restructuring, At Home will undergo a transition of ownership to the lenders supporting the RSA and providing new capital including Redwood Capital Management, Farallon Capital Management, and Anchorage Capital Advisors, the company noted.
Under the RSA, the company has agreed to certain milestones to ensure an orderly emergence from Chapter 11 as soon as practicable after the filing of the cases. In a filing with the court, details of the milestones include At Home’s board approving the filing of an acceptable plan as to execution of the DIP facility and an associated disclosure statement.
“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, At Home CEO. “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. While we have made significant progress advancing our initiatives to date, 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.”
Weston added At Home would continue operations with “significant support from our financial stakeholders, which demonstrates their confidence in our business and our future strategy. Upon emergence from the prearranged restructuring process, At Home will move forward with new owners and a meaningfully strengthened balance sheet. Importantly, this process will also further equip us with opportunities to invest in our strategic initiatives and to continue fortifying our business for the long term. As we work through this process, our stores and the teams that support them remain customer focused and committed to serving and inspiring customers, enabling them to ‘Design Their Life At Home.’ ”
