At Home Announces Closure of Additional Stores Following Bankruptcy Filing

What's Happening?

At Home, a home goods retailer based in Coppell, Texas, is closing an additional six stores across the United States, increasing its total closures to 30. This decision follows the company's Chapter 11 bankruptcy filing on June 16, citing high debt and declining sales due to broader economic pressures. Initially, At Home planned to close 26 stores but later reduced this number to 24, keeping two locations in New Jersey and Wisconsin open. The recent announcement adds six more stores to the closure list, with liquidation sales underway. At Home employed approximately 7,170 employees at the time of its bankruptcy filing.

Why It's Important?

The closure of At Home stores reflects significant challenges faced by brick-and-mortar retailers in the current economic climate, including rising interest rates and persistent inflation. These factors, along with increased tariffs, have contributed to unsustainable operational costs for At Home. The company's bankruptcy and store closures are part of a larger trend affecting several 'big box' retailers, such as Big Lots and Macy's, which have also downsized their physical presence. This development impacts employees, local economies, and the retail industry, highlighting the shift towards online shopping and the need for retailers to adapt to changing consumer behaviors.

What's Next?

As part of the bankruptcy proceedings, ownership of At Home will be transferred to a group of hedge funds and investment firms based in New York City and San Francisco. The company will continue to manage its remaining stores, focusing on optimizing performance levels. The closures are expected to be completed by September 30, with liquidation sales ongoing at the affected locations. Stakeholders, including employees and local communities, will be closely monitoring the impact of these closures and the company's restructuring efforts.