This year is increasingly starting to feel like a real-life episode of “The Walking Dead,” as major retail chains are beginning to disappear across the U.S.
Over the last few months, renowned names like Big Lots, Macy’s, Joann Fabrics, JCPenney, Forever 21, and Party City have closed dozens of locations, and some even had to file for the most dreaded bankruptcy.
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With so many iconic retailers closing, it feels like a part of history is being erased. Future generations will never experience the same love-hate relationship we had with being forced to shop for home decor with our mothers and carrying multiple shopping bags after being bribed with lunch.
Related: Bankrupt retail chain makes major comeback, reopens new stores
No surprise to many, another big-box retailer has filed for Chapter 11 bankruptcy, but this one is very personal to all Southerners, whether they’re home goods enthusiasts or not.
Founded in 1979, At Home, previously known by loyal fans as Garden Ridge, is a home decor and furnishing retail chain with 260 locations in 40 states.
At Home files for Chapter 11 bankruptcy.
Wikipedia/Careymarin
A big box retail chain’s tumultuous financial struggles
The former Garden Ridge filed for Chapter 11 bankruptcy in 2004 to address lease and contract obligations and emerged from it the following year.
Ten years later, the company announced plans to rebrand completely. It changed its name to At Home, refocused its products mainly on home decor, and became public in 2016.
Related: Huge home retailer filing Chapter 11 bankruptcy, closing stores
At Home was later acquired by the private equity firm Hellman & Friedman in 2021. Although this meant the company would be delisted, it grew immensely and maintained strong financials.
However, the retailer was not immune to the aftermath of the Covid pandemic, which caused inflation and a pullback in consumer spending that many retailers couldn’t weather.
The bills began piling up, and to pay off its mounting debt, At Home implemented cost-saving initiatives, which led it to liquidate and shut down multiple stores.
At Home files for Chapter 11 bankruptcy
The store closures sounded the alarm for many customers who were worried about the future of the beloved retailer.
Rumors of bankruptcy began swirling, and a few months later, their biggest nightmare came true.
At Home filed for Chapter 11 bankruptcy on June 16 in the U.S. Bankruptcy court for the District of Delaware, citing unsustainable costs due to tariffs and a slowdown in consumer spending as the main reasons in court documents.
As a result, the company will permanently close 26 underperforming stores by September 30.
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To navigate the bankruptcy, At Home entered a Restructuring Support Agreement (RSA) with lenders holding more than 95% of its debt to eliminate the nearly $2 billion in funded debt and provide financing of $200 million that aims to support the retailer through its restructuring process.
Ownership transition to the supporting lenders is expected once At Home emerges from the RSA.
“These efforts are aimed at delivering sustained sales growth, optimizing our inventory management, improving efficiency, and enhancing overall profitability,” stated At Home in a press release.
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