Popular Home Goods Chain Files For Bankruptcy As CEO Blames Tariffs

At Home, a popular Texas-based home goods chain, has filed for Chapter 11 bankruptcy protection, citing significant challenges from tariffs as a major factor. The company, which operates over 200 stores across 40 states, announced the filing on Monday (June 16).

CEO Brad Weston explained that the company is navigating a rapidly evolving trade environment impacted by tariffs. He stated that while most stores will continue to operate, the bankruptcy process will help strengthen the business in the long term. However, around 20 store locations are expected to close, with more potentially on the chopping block as the company progresses through the courts.

At Home has struggled with debt and competition from rivals like IKEA and HomeGoods. Retail expert Neil Saunders noted that the chain's stores lack appeal and are being outperformed in price and variety by competitors. The company, which entered private equity ownership in 2021 through a $2.8 billion deal with Hellman & Friedman, missed a critical interest payment in May.

The retailer sources most of its inventory from China, where products face a 30 percent tariff rate due to policies from President Donald Trump's administration. This has forced At Home to consider taking on more debt or raising prices. Efforts to pivot away from Chinese suppliers began in late 2023, with new partnerships being formed with manufacturers in India.