At Home Group files for Chapter 11, wiping out nearly $2B debt, securing $600M in financing and new ownership, while Michigan stores stay open and payroll continues.

Coppell, Texas (June 18, 2025) — At Home Group Inc., the national home goods chain operating 260 stores, officially filed for Chapter 11 in Delaware on June 16, 2025. The move accompanies a Restructuring Support Agreement with lenders holding over 95 percent of nearly $2 billion in funded debt. The agreement will pair debt elimination with a $200?million capital injection and $600 million in debtor in possession financing to maintain ongoing operations.

Under the agreement, ownership will transition to lenders, including Redwood Capital Management, Farallon Capital Management, and Anchorage Capital Advisors, who will absorb fresh capital during and after the restructuring. The company will also shutter 26 underperforming stores—none currently in Michigan—and plan to emerge from bankruptcy by October 2025.

Tariff induced pressure prompted an urgent restructuring push

According to CEO Brad Weston, stricter import tariffs on Chinese goods “navigate the impact of tariffs,” further compounded by inflation, rising interest rates, and soft consumer foot traffic. Weston noted the restructuring “will improve our ability to compete…face continued volatility and increase the resilience of our business”

Economic experts underscore the broader ripple effects of trade policy on retailers. Many have observed that “retailers with large Chinese-sourced inventories saw margins erode as tariffs hit at rates as high as 145 percent. A shift to diversified suppliers helps, but debt-laden businesses like At Home faced a critical liquidity pinch.”

Michigan stores remain steady as regional operations are unaffected

At Home operates several stores in Michigan, including Troy, Grand Rapids and Flint. Despite the national restructuring, no Michigan stores are slated for closure, and employees will receive normal wages and benefits throughout the Chapter 11 proceedings.

Local customers and suppliers reported no immediate disruptions. “We continue supporting Michigan-based artisans supplying to At Home,” said a spokesperson for a regional vendor. “Shipping and orders remain on schedule.”

Operational continuity backed by a strong financing package

The retailer arranged a $600?million DIP financing package—$200 million in new equity plus a $400?million “roll-up” of secured senior debt—which under court approval will sustain store-level inventory and online orders.

Bankruptcy documents list 10,000–25,000 creditors and assets and liabilities each within $1–10 billion. The court approved “first?day” motions ensure ongoing customer and vendor engagement without interruption to payroll or supply chains.

Retail sector under strain as debt and trade woes mount

At Home joins several home goods peers such as Bed Bath & Beyond, The Container Store, and Big Lots in seeking court protection as trade uncertainties dampen consumer spending.

A retail sector analyst at Bloomberg cautioned that “retailers with leveraged balance sheets and concentrated supply from China are particularly at risk. At Home’s shift to suppliers in India, Vietnam, and Turkey won’t offset the immediate drop in margins and liquidity”.

The restructuring plan aims for a streamlined future and new ownership

The RSA sets fast court benchmarks for creditor approvals and a planned exit from Chapter 11 by late October 2025. Upon emergence, the new ownership consortium intends to channel savings and capital toward merchandising, inventory systems and marketing initiatives designed to restore profitability wsj.com.

Michigan consumers and stakeholders advised to watch local updates

Regional customers in Michigan should see no changes in normal store operations. Still, state suppliers that rely heavily on At Home should maintain communication with corporate for updates on future supply contracts after the ownership transition.

MLA Works Cited

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CT Insider Staff. “What At Home’s Bankruptcy Means for Connecticut? 26 Stores Closing Nationwide.” CT Insider, 17 June 2025, https://www.ctinsider.com/business/article/at-home-bankruptcy-connecticut-stores-20381194.php.

Xu Klein, Jodi, and Connor Hart. “Retailer At Home Files Chapter?11 Bankruptcy, Hobbled by Tariffs and Debt.” The Wall Street Journal, 16 June 2025, https://www.wsj.com/articles/at-home-retailer-chapter-11-bankruptcy-ad3b6e01.

Sullivan, John. “Popular Home Goods Chain Files for Bankruptcy Due to ‘Rapidly Evolving Trade Environment.’” New York Post, 16 June 2025, .

Howland, Daphne. “At Home Blames Bankruptcy on Tariffs, Consumer Uncertainty.” Retail Dive, 16 June 2025, .

Pumped, Aislinn Murphy. “Home Decor Retailer Files for Chapter 11 Bankruptcy as Part of Restructuring.” Fox Business, 16 June 2025,

Business Wire. “At Home Group Enters Agreement to Facilitate Ownership Transition and Position Business for Long?Term Success.” 15 June 2025,

Noto, Grace. “Bankrupt At Home ‘Significantly Impacted’ by Tariffs, CFO Said.” CFO Dive, 16 June 2025, https://www.cfodive.com/news/athome-significantly-impacted-tariffs-ahead-bankruptcy-cfo-retail/750857/.

“At Home Group Enters Chapter 11 Amid Restructuring.” WSJ (Business Wire excerpt), 16 June 2025, https://www.wsj.com/articles/at-home-group-enters-chapter-11-amid-restructuring-ad3b6e01?gaa_at=eafs.

“Retail Apocalypse.” Wikipedia, 18 June 2025, https://en.wikipedia.org/wiki/Retail_apocalypse.

“At Home (store).” Wikipedia, 18 June 2025, https://en.wikipedia.org/wiki/At_Home_%28store%29.

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