Retail bankruptcies are becoming a harsh reality for many companies in 2025. S&P Global Market Intelligence counted 371 corporate filings in the first half, 10.7% more than in 2024 and the highest January–June total since 2010.
Retailers made up the biggest share, led by consumer-discretionary chains battered by tariffs, inflation, and debt. Analysts warn that the pace positions 2025 for a fifteen-year high for bankruptcy statistics.
Debt Load
At Home’s finances epitomize the squeeze. Court filings show the chain carried $2 billion in funded debt against $3 billion in 2024 sales, a leverage multiple of more than five times.
CBS News, citing Bloomberg, reported that the Texas-based retailer missed a May 15 interest payment, triggering a forbearance that set the stage for bankruptcy protection and the drastic store-closing program that is now underway for chains.
Tariff Trouble
Tariffs have only exacerbated the crisis. In bankruptcy declarations, Chief Financial Officer Jeremy Aguilar said import duties “added approximately $300 million in incremental costs since 2022.”
CNN reported that around 90% of the company sources its merchandise from overseas suppliers, so every container entering U.S. ports now bears a 30% levy after earlier peaks of 145%.
Spending Shift
While the costs rise, consumer demand plummets for big-ticket décor. Placer.ai data shows that overall retail foot traffic slipped 0.5% year over year in Q1 2025.
High-interest credit balances and shrinking household savings pushed the U.S. Census Bureau’s furniture and home-furnishings sales index down 7.8% versus 2024, squeezing chains like At Home across the sector.
Chapter 11
On June 16, 2025, At Home Group filed for Chapter 11 bankruptcy in Delaware. The pre-arranged restructuring wiped out nearly all of its $2 billion debt, injected $200 million in fresh capital, and authorized the liquidation of 26 “underperforming” stores by September 30.
“These steps will increase the resilience of our business,” CEO Brad Weston said in the court-approved release, announcing a controlled store-exit timeline nationwide.
Nationwide Hits
Stores are closing in 14 states across the U.S.. Chain Store Age listed California with eight exits, New Jersey with three, and single shutdowns from Montana to Florida.
Each big-box averages 105,000 square feet and 25-40 employees, so roughly 800 positions will disappear unless workers transfer. The 26 stores equal 10% of At Home’s 260-unit fleet, chipping at mall occupancy in multiple regions as landlords recalculate leasing.
Job Impact
Employees are facing unprecedented stress as job security dwindles. USA Today reported that At Home had about 7,170 workers at filing and initially proposed to eliminate 26 locations, though two sites were later reprieved.
Labor groups say most affected staff are part-timers without collective bargaining, limiting their severance leverage.
Sale Launch
To make the most of stocks in closing locations, Hilco Consumer-Retail is managing sales, with “Store Closing Blowout” banners appearing on June 19, urging shoppers to “save on a massive inventory of home furnishings and décor.”
The liquidator confirmed starting markdowns of up to 30% across every department, with fixtures and equipment also for sale.
Half-Price Finds
Discounts only deepened after five weeks. A Best Life field report from Crestwood, Illinois, noted window treatments at 50% off, furniture 40% and selected décor at 50%.
TikTok clips from Foothill Ranch and Milwaukee showed similar half-price tags. Shoppers posted “haul” videos spotlighting $299 sofas at $179, confirming that the liquidation now meets the headline’s 50%-off promise on broad categories in multiple states.
Everything Goes
Hilco has stressed that there are no exclusions in the sale. Its news release pledges “from wall art and rugs to patio furniture and kitchen essentials, everything must go.” Court papers require proceeds to repay debtor-in-possession financing, incentivizing full clearance.
Consumers should be aware that signs state coupons are void and loyalty points expired on July 2, signaling a true store-wide sale rather than selective markdowns, and positioning shoppers for progressively steeper bargains ahead.
Landlord Math
Large retail departures ripple through malls. Chain Store Age observed that losing a 100,000-square-foot tenant can cut center net income 8% unless replacements emerge, while owners face retrofit costs of $40-$60 per square foot.
Real-estate investment trust CBL told investors it is marketing pads to entertainment and medical users, underscoring the scramble to backfill space vacated by At Home chains across malls.
Ownership Shift
The restructuring support agreement states that control of At Home will pass to secured lenders representing more than 95% of its debt.
The company said the transaction will leave it “substantially deleveraged” and backed by $200 million in new exit financing, positioning CEO Brad Weston and the board to focus on e-commerce, efficiency, and a tighter real-estate footprint once bankruptcy court confirms the plan.
Rival Moves
Competitors see opportunity. Reuters noted that off-price giant TJX plans to accelerate HomeGoods and Homesense openings as shoppers hunt deals amid tariffs.
Online leader Wayfair’s CEO Niraj Shah told analysts, “Periods of disruption have historically been moments where Wayfair pulls ahead,” highlighting a 40% expansion in suppliers’ spending on its advertising platform. Both players expect to capture share from vacated At Home markets.
Credit Caution
S&P Global warns that discretionary retailers remain fragile. In its July bankruptcy-tracking report, the agency said nearly half of retail issuers rated B- or worse hold negative outlooks, citing tariffs, inflation and high rates.
Analysts called At Home’s liquidation “a bellwether” and projected more defaults unless consumer confidence rebounds in late 2025, keeping access to capital tight across the sector next.
The Road Ahead
Will a lighter balance sheet and headline-grabbing discounts lure shoppers back, or will digital rivals seize the gap once liquidation signs come down?
Court hearings on plan confirmation are set for August, and analysts say post-bankruptcy performance will hinge on reducing tariff exposure and reigniting foot traffic. The autumn clearance finale could prove either a reboot or a requiem for home retail.