At Home Group enters Chapter 11 bankruptcy; will have new owners
At Home Group Inc. is commencing Chapter 11 bankruptcy proceedings and plans to transfer ownership to lenders providing restructuring support.
The fast-growing, value home décor retailer was initially reported to be exploring filing for bankruptcy in April 2025 amid struggles to meet its debt obligations. The Dallas-based company sources nearly all of its product from abroad and has been challenged by the Trump Administration’s tariffs on most imported goods.
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At Home has entered into a restructuring support agreement with lenders holding more than 95% of its debt that will eliminate substantially all of its nearly $2 billion in funded debt and provide a capital infusion of $200 million to support the company through its restructuring process and beyond.
To implement the terms of the agreement, the company and some of its subsidiaries have commenced voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of Delaware. At Home is continuing to serve customers during the court-supervised process and has agreed to certain milestones to help ensure an orderly emergence from Chapter 11.
Following the consummation of its restructuring, the company expects there will be a transition of ownership of At Home to the lenders supporting the agreement and providing new capital, including funds affiliated with Redwood Capital Management, LLC, Farallon Capital Management, L.L.C. and Anchorage Capital Advisors, L.P.
In connection with this process, At Home is entering into an agreement for $600 million in debtor-in-possession (“DIP”) financing, which includes the $200 million capital infusion from some existing lenders and a “roll up” of $400 million of existing senior secured debt.
Upon court approval, At Home expects this financing, together with cash generated from its ongoing operations, will support its business during the court-supervised process.
At Home operates 260 locations in 40 states. Stores average a little over 100,000 sq. ft. and feature up to 50,000 home décor items. The selection ranges from furniture, rugs, wall art and housewares to tabletop, patio and holiday décor.
The company was acquired in 2021 by private-equity firm Hellman & Friedman in an all-cash transaction valued at $2.8 billion, including the assumption of debt.
In May 2024, At Home named Brad Weston as CEO, succeeding longtime chairman and chief executive Lewis L. (Lee) Bird III., who retired. Weston is the former CEO of Party City. He also spent several years in various leadership roles at Petco.
"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 Weston. "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. 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."
The company has filed a number of customary “first-day” motions with the court to maintain business operations, facilitate the efficient administration of the Chapter 11 cases, and continue payment of employee wages and benefits without interruption. Additional information regarding At Home’s court-supervised process is available at AtHomeRestructuring.com.
Kirkland & Ellis is serving as legal counsel, PJT Partners is serving as financial advisor, AlixPartners is serving as restructuring advisor and Hilco Real Estate is serving as real estate consultant to At Home. Joele Frank, Wilkinson Brimmer Katcher is serving as strategic communications advisor.
Dechert LLP is serving as legal counsel and Evercore Group LLC is serving as financial advisor to the ad hoc group of lenders.
