The world of brick-and-mortar retail has been in a state of upheaval ever since online shopping surged in popularity, but it’s never seemed to be struggling quite as much as it is now.
Seeing once-popular stores shutter indicates just how challenging the situation has become.
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Joann, the classic fabric and craft store, is an example of a retailer no one thought would ever go away. Closing the last of its stores this month after declaring Chapter 11 bankruptcy for the second time in January 2025, the retailer had operated successfully for 82 years and filled a niche in the market long unoccupied by any major competitors.
Related: Beloved retailer in Chapter 11 bankruptcy angers customers
It’s also hard to imagine malls without fast-fashion retailer Forever21. Despite those signature canary-yellow shopping bags being seemingly everywhere at one time, the retailer declared its second bankruptcy in March 2025, saying in an official announcement that “rising costs and increased competition from abroad have made our current business model unsustainable.”
Forever21 has since closed all its U.S. stores as of May 2025.
Now, another retailer many people have long enjoyed seems to be about to start the process of filing for Chapter 11 bankruptcy, and it could predict an unfortunate future for the chain.
This popular retailer may have seen its last Christmas season.
Image source: Nicholson/UCG/Universal Images Group via Getty Images
46-year-old retailer is behind on payments
At Home, a home-goods retailer owned by private equity firm Hellman & Friedman, is preparing to file Chapter 11 bankruptcy, according to a new Bloomberg report sourcing people with knowledge of the matter.
Separate sources also said the company did not make its interest payment on May 15, leading it to enter a forbearance pact with lenders on May 23. The reprieve runs through June 30, added the sources, who asked not to be publicly identified.
At Home currently has $17.3 million available under its asset-based facility, according to the sources.
Related: Bankruptcy forces iconic ice cream chain to close 500 locations
At Home is “actively collaborating with our financial stakeholders and have put forbearance agreements in place with respect to certain interest payments under the company’s debt instruments,” a spokesperson for the company said in an emailed statement.
The spokesperson also told Bloomberg, “These agreements provide us flexibility as we continue to take steps to position At Home for near and long-term success.”
At Home has been struggling with debt
An April report from The Wall Street Journal also indicated that the company was considering bankruptcy at that time, as it wrestled with the additional weight of how tariffs would affect its business.
At Home currently sources the majority of its product from overseas, meaning it would be extremely vulnerable to increased costs.
The company has made attempts to redirect its supply chain away from China since late 2024, looking to India and other countries as potential new options.
Before the tariffs issue ever became a reality, however, At Home already had another colossal problem.
The retailer has struggled with how to restructure roughly “2 billion in debt,” per WSJ, and was negotiating with landlords and creditors earlier this year.
In April, At Home was looking into a debt-restructuring plan with some lenders that could “potentially hand control of the troubled retailer to creditors,” according to sources quoted by WSJ.
Once the retailer officially files bankruptcy, it has several potential options, from navigating a plan to repay creditors over time to choosing to sell off its stores to pay its debt. However, its stores may continue to operate, so the retailer is still in the game for now.
Related: Huge truck rental company files for Chapter 11 bankruptcy
