At Home Files for Bankruptcy: Tariffs, Debt, and Shifting Consumer Trends Shake US Retail Giant

The home goods chain enters Chapter 11 with $2B debt relief plan and $200M in fresh funding amid tariff pressures and declining discretionary spending

Dallas, TX — In a move that marks another blow to the struggling American home goods retail sector, At Home, the Texas-based chain known for its expansive in-store offerings of furniture, décor, rugs, and seasonal items, has filed for Chapter 11 bankruptcy protection. The company cited the dual impact of escalating tariffs and a continued pullback in consumer spending as key forces behind its decision.

At Home, which operates 260 stores across 40 U.S. states, confirmed Monday that it had reached an agreement with its lenders to eliminate nearly all of its approximately $2 billion in debt. The deal will also provide $200 million in fresh capital to support operations throughout the restructuring period.

Brad Weston, the company’s CEO who took the helm last year, acknowledged the weight of today’s trade environment in a statement:

“We are operating against the backdrop of an increasingly dynamic and rapidly evolving trade environment as we navigate the impact of tariffs. These changes 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.”

A Trade and Spending Storm

At Home’s challenges are part of a broader trend impacting U.S. retailers. Businesses across the country continue to grapple with unpredictable tariff policies, particularly on imports from China, where many of At Home’s products are sourced. Recent months saw American tariffs peak at 145%, before a temporary agreement reduced that figure to 30% — a volatile swing that has complicated inventory planning and pricing.

At the same time, discretionary consumer spending has taken a hit in recent years. Inflation, economic uncertainty, and shifting lifestyle priorities have reduced demand for non-essential home goods. Iconic names like Bed Bath & Beyond, Big Lots, and The Container Store have also filed for bankruptcy in the wake of this downturn.

Debt-Driven Downfall

While market conditions have certainly been challenging, experts suggest At Home’s financial foundation was unsustainable from within.

“The main problem was the extensive debt the company had on its balance sheet,” said Neil Saunders, Managing Director at GlobalData. “This was not sustainable, and its elimination under Chapter 11 will provide a more stable basis on which the company can operate.”

Saunders also critiqued the retailer’s positioning in a competitive space dominated by names like Ikea and Wayfair:

“At Home’s proposition is weak and not sufficiently differentiated… There is way too little inspiration and not nearly enough excitement to draw people into the stores, particularly in areas where competition is high.”

What’s Next?

Despite the filing, At Home has stated it will continue operating during the bankruptcy process. Orders will be fulfilled, vendors paid, and the loyalty program maintained. The company has signaled that most stores will remain open, though about 20 are reportedly slated for closure, according to The Wall Street Journal.

Weston remains optimistic about the retailer’s future post-restructuring:

“Upon exiting Chapter 11, At Home will move forward with new owners and a meaningfully strengthened balance sheet.”

As the company navigates this critical transition, industry observers will be watching closely to see if At Home can reinvent itself in a marketplace that now demands sharper brand identities, digital sophistication, and resilient supply strategies.