A US-based home décor retailer is preparing to file for Chapter 11 bankruptcy in the coming weeks, as it struggles to navigate a mounting liquidity crisis. The company, owned by private equity firm Hellman & Friedman, has been hit hard by recent US tariffs and shifting trade dynamics, which have worsened its already strained financial position.
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Sources close to the matter revealed that At Home failed to make an interest payment due on 15 May and subsequently entered a forbearance agreement with its lenders on 23 May. This temporary reprieve is expected to last until 30 June, giving the company time to explore restructuring options.
In a statement, an At Home spokesperson confirmed the forbearance agreements, noting they offer "flexibility as we continue to take steps to position At Home for near and long-term success." Advisors from PJT Partners Inc. are assisting the company, though neither PJT nor Hellman & Friedman have commented publicly.
At Home reportedly has $17.3 million remaining under its asset-based credit facility. To mitigate tariff exposure, the retailer has accelerated efforts to diversify its supply chain, reducing reliance on China and sourcing more from countries like India.
The company's financial distress underscores the broader challenges faced by US retailers amid global trade tensions and rising operational costs, particularly in the home and interiors sector.
As it seeks a path forward, At Home must balance restructuring pressures with the need to maintain supplier and customer confidence in a volatile retail landscape.
Source: www.bloomberg.com