There have already been some major store closures this year, and the economy clearly isn’t finished yet. Soon enough, someone might wake up one morning, head over to their favorite At Home store, and find a closed sign on the door. With over 250 stores across the United States, they quickly became a staple for shoppers looking for affordable home furniture and décor.
Unfortunately, to improve their financial standing, they’ll be closing 26 underperforming stores by September 30, 2025. Will one of your go-to spots be affected?
Garden Ridge to At Home
From its humble beginnings as Garden Ridge Pottery in 1979, At Home has become a much-loved store among shoppers over the past decades. Founded by Eric White in Schertz, Texas, these stores took the town by storm, expanded drastically, and had several changes in ownership.
In 2014, a major rebranding effort saw all Garden Ridge stores convert to the At Home banner, accompanied by a $20 million investment to update store layouts, signage, and merchandising to better reflect a modern home décor focus. Not to mention that they have something for every shopper and every budget, making them a great choice for anyone looking to spice up the decor in their home.
The Bankruptcy Filing
While facing major financial troubles, a changing economy, and changing shopper habits, At Home officially filed for Chapter 11 bankruptcy on June 16, 2025, in the U.S. Bankruptcy Court for the District of Delaware. The Texas-based company listed assets and liabilities estimated between $1 billion and $10 billion, with over 10,000 creditors involved.
The filing is part of a comprehensive restructuring plan that will help eliminate nearly $2 billion in debt while securing $200 million in new capital to support ongoing operations.
Locations Shutting Down
As part of the agreement, 26 underperforming stores across 12 states will close their doors before the end of the year. The closures span coast to coast, with stores closing in New York, Florida, Illinois, Massachusetts, Minnesota, Montana, New Jersey, Pennsylvania, Virginia, Washington, and Wisconsin.
While these store closures might come as a shock, they will streamline the company’s footprint and strengthen its financial position following declining sales, inflationary pressures, and increased tariffs.
The CEO’s Official Statement
At Home CEO Brad Weston addressed employees, customers, and stakeholders with a message of resilience and determination. He acknowledged the profound challenges facing the retail sector and emphasized that the decision to restructure was not taken lightly but necessary to ensure the company’s long-term viability.
“While we have made significant progress advancing our initiatives to date, we are operating against the backdrop of an increasingly dynamic and rapidly evolving trade environment as we navigate the impact of tariffs,” said At Home CEO Brad Weston. “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 Hellman & Friedman Era
At Home’s journey through private equity ownership began in 2021 when Hellman & Friedman (H&F), a global private equity firm, acquired the retailer in an all-cash transaction valued at $2.8 billion, including the assumption of existing debt. The acquisition took At Home private, ending its tenure on the New York Stock Exchange.
“Hellman & Friedman takes great pride in partnering with outstanding management teams to invest in highly differentiated businesses with substantial room for growth. At Home fits that bill perfectly,” said Erik Ragatz, Partner at H&F. “We believe the unique shopping experience and compelling value At Home offers consumers will position the Company to continue to grow and take market share in the coming years, and we have great confidence in the team at At Home to deliver on this potential.”
Impact on Employees
Closures like these cause widespread panic and concern among employees about what the future holds for them. Employees at the affected locations will receive 60-day notices of involuntary layoff in the coming weeks, as required by law, signaling imminent job losses for many.
While most locations will remain open, those impacted by closures may face job losses or benefit reductions as the company restructures.
The Restructuring Plan
Through a court-supervised Chapter 11 process, At Home has entered into a Restructuring Support Agreement (RSA) with lenders holding more than 95% of its debt, ensuring broad backing for its turnaround strategy. The plan includes a $600 million debtor-in-possession financing package, featuring a $200 million capital infusion from existing lenders and a $400 million roll-up of senior secured debt, which will provide the liquidity needed to maintain business operations and support employees during the transition.
“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 have taken deliberate steps to strengthen the foundation of our business – sharpening our focus, elevating our customer value proposition, and driving operational discipline.”
A Changing Industry
Since the life-changing events of Covid, the retail industry has never been the same again, and that goes for pretty much every sector as the economy keeps changing and shoppers keep adapting. The sector is enduring its worst downturn since the 2008 financial crisis, driven by a combination of rising tariffs, persistent inflation, and a marked pullback in consumer spending.
Inflation has massively influenced purchasing power, and many Americans, anxious about the economy and their own finances, have scaled back discretionary spending, especially on home goods and décor.
What’s Next for At Home?
While At Home’s future might not be certain at this stage, it will hinge on its ability to adapt to a rapidly evolving retail and home goods landscape. As the company works through its restructuring, it will focus on strengthening its financial foundation, optimizing its store footprint, and investing in the customer experience to regain consumer trust and loyalty.
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