At Home Group Inc., a Texas-based home decor retailer, is preparing to file for Chapter 11 bankruptcy protection in the coming weeks as it grapples with severe liquidity challenges and mounting economic pressures.

The company, owned by private equity firm Hellman & Friedman, operates over 260 stores across 40 U.S. states and has been a prominent player in the home furnishing industry for 46 years.

However, recent financial setbacks, exacerbated by U.S. tariffs and a global trade war, have pushed the retailer toward a court-supervised restructuring.

At Home has faced a significant cash shortage in recent months, with only $17.3 million available under its asset-based lending facility as of May 2025.

The retailer’s financial difficulties became particularly evident when it missed a critical interest payment on May 15, 2025.

Following this default, At Home entered into a forbearance agreement with its lenders on May 23, 2025, which temporarily suspends payment obligations until June 30, 2025.

This agreement provides a brief reprieve as the company works to stabilize its operations and explore restructuring options.

The retailer has been burdened by approximately $2 billion in debt, a challenge it has been attempting to address since early 2025.

According to reports, At Home has been negotiating with landlords and creditors to restructure this debt, with earlier considerations of a plan that could potentially hand control to creditors.

The looming bankruptcy filing is seen as a strategic move to reorganize its debts and operations under court supervision, potentially allowing the company to continue operating while addressing its financial obligations.

A significant factor contributing to At Home’s financial strain is its heavy reliance on overseas suppliers, particularly from China.

U.S. tariffs and ongoing global trade tensions have increased costs, making the company vulnerable to price hikes and supply chain disruptions. In response, At Home began efforts in late 2024 to diversify its supply chain, exploring alternative sourcing options in countries like India.

This shift aims to reduce dependence on Chinese suppliers and mitigate the impact of tariffs, but the transition has yet to alleviate the retailer’s immediate liquidity issues.

Compounding its financial challenges, At Home announced a leadership transition earlier in May 2025, appointing Brad Weston as its new CEO, effective June 3, 2025.

Weston, who previously served as CEO of Party City Holdings Inc., brings experience navigating retail challenges, but his appointment comes at a critical juncture as the company faces an uncertain future.

At Home’s struggles are part of a broader wave of financial distress in the retail sector.

In 2024 and 2025, numerous retailers, including Party City, Joann Inc., and Conn’s Inc., have filed for Chapter 11 bankruptcy or announced significant store closures due to economic pressures such as inflation, rising interest rates, and shifting consumer spending habits.

The home decor and furniture sectors have been particularly hard-hit, with companies like Z Gallerie and Progressive Furniture also facing bankruptcy or closure.

At Home’s potential bankruptcy filing adds to this growing list, highlighting the challenges of operating in a competitive and economically volatile environment.