Huge home retailer filing Chapter 11 bankruptcy, closing stores | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

While certain discount retailers have thrived, not every chain has the loyal customers that support Marshalls, Ollie’s Bargain Outlet, Ross Dress for Less, HomeGoods, and other thriving chains.

In fact, the current retail apocalypse has claimed a lot of players in the discount space including some that seemed to have a devout following. The death of Christmas Tree Shops, for example, was shocking only because that chain seemed to have a cult following.

It was perhaps less surprising when Bed Bath and Beyond went out of business as that chain seemed to have lost its way, but its death was unexpected if only because the retailer filled a product niche.

Retailers including Tuesday Morning, which offered the same treasure hunt model made popular by Marshalls, TJ Maxx, and HomeGoods — all sister brands under TJX Companies (TJX) — did not survive its Chapter 11 bankruptcy.

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Joann and Party City were not discount retailers, but they also served very specific audiences and could not find enough customers to survive. In both of those cases, it took multiple bankruptcies to kills the popular brands and it’s likely their debt was simply impossible to overcome.

Now, a popular home goods brands (and rival to HomeGoods) is preparing a Chapter 11 bankruptcy filing which will likely included closing multiple stores.

At Home has been struggling

At Home sells a bit of everything people need for their home. That includes furniture, accessories, and pretty much else that might go in a house.

The company described its business on its website:

“For over 46 years, At Home has been a trusted destination for stylish, approachable design — offering everything a decorator may need to transform their space into a true reflection of who they are, how they want to live, and the memories they aim to create at home. Discover everything for every room, from Furniture, Rugs and Décor to Bedding, Bath, Outdoor and more. Explore curated collections, incredible seasonal selections and unique pieces that show off your signature style. Design your life At Home,” the company shared.

Many home goods retailers saw banner business during the Covid pandemic. Even though stores were closed, or at least limited, customers were stuck at home so they worker on making that space as comfortable as possible.

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A lot of people built home offices, replaced old couches, and made other improvements.

That pulled some demand forward and created unpredictable sales patterns as normal replacements cycles were thrown off. It’s a phenomenon that created some up and down quarters for numerous retailers including Best Buy, Lowe’s, and Home Depot.

At Home expected to file Chapter 11 bankruptcy

An At Home bankruptcy has been rumored for quite some time and now a number of media reports have shared that it’s expected to happen imminently.

The chain missed a key interest payment on May 15. That’s often a planned move for a company looking to file for Chapter 11 bankruptcy protection.

Skipping a payment can force a lender to foreclose on the loan, but it can also bring them to the bargaining table. At Home has until June 30, to catch up on that payment and fix its account, but a bankruptcy filing is more likely.

Once it files for Chapter 11 bankruptcy (should it choose to do so), the struggling retailer, is expected to immediately begin closing about 10% of its stores. The chain currently operates 200 stores and other beyond the original 20 may face closure as well.

At Home has blamed its financial woes at least partly on President Donald Trump’s tariffs, which have increased the price of certain goods while creating pricing uncertainties going forward.

The tariffs have also slowed down some discretionary consumer spending as people wait to see what their impact will be.

At Home sources most of its products from China, the country that will be hit the hardest by the tariffs. It has been working to buy items from other sources, but it’s not easy or quick to revamp you supply chain.

At Home and its parent company have not responded to media requests for comment.