Anna Wells
2 min read
Retail sellers have been in inconsistent territory lately, as buying trends and consumer sentiment shifts reflect an uncertain economy. Retail Insight Network recently suggested that, in the coming months, retailers will watch closely “as the effects of tariffs, inflation, and interest rates continue to shape purchasing patterns.”
And for one major purveyor of home goods, it seems all of these issues have been problematic – so much so that it’s filing for bankruptcy.
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At Home is a retailer that was first established way back in 1979 and has grown significantly since. The brand was acquired a few years back by a private equity firm for $2.8 billion and operates more than 260 stores with 7,000+ employees.
So why is At Home filing Chapter 11?
The company says that after gaining a boost from pandemic spending, it was saddled with heavy freight costs and supply chain disruptions. As demand started to wane due to inflation, the business accumulated some $2 billion debt.
Company leaders say today’s consumer spends less than they did a few years back, due to reduced confidence and economic uncertainty. The other issue, said At Home, is tariffs: the company sources 90% of its goods from overseas, according to Retail Dive, and this volatility of the current environment added significant pressure at a time when At Home was trying to solve its other problems.
So, instead, the problems will be addressed through the bankruptcy proceedings: according to reports, its $2 billion in debt will be wiped out based on agreements that have been reached with many lenders.
The home decor and furniture seller will also close 26 stores.
Brad Weston, CEO of At Home said the company’s recent efforts "will improve [its] ability to compete in the marketplace in the face of continued volatility and increase the resilience of [the] business for the long term."
That said, some experts are less optimistic about the path forward for At Home. CBS News quoted Neil Saunders, managing director of GlobalData, who said that even if the retailer is able to tackle its debt, the dynamics that are contributing to the purchasing slowdown are “unlikely to change in the near term.”
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