At Home Group Inc. filed its proposed disclosure statement with the U.S. Bankruptcy Court for the District of Delaware on July 29, detailing plans to eliminate approximately $1.62 billion of its existing $1.998 billion in debt through its ongoing Chapter 11 reorganization. The home décor and furnishings retailer, which operates approximately 260 stores across 40 states, is progressing through bankruptcy proceedings that began on June 16, 2025.
The comprehensive disclosure statement outlines how the Coppell, Texas-based retailer plans to restructure its operations and emerge as a stronger business, with broad support from approximately 96% of its first lien debt holders. The company employs over 7,000 people nationwide and aims to continue operating throughout the restructuring process.
"The Restructuring Transactions contemplated by the RSA provides the best path forward for the Debtors to continue business as usual while allowing the Debtors to continue to consider value-maximizing alternatives," the company stated in the newly filed court documents.
According to the disclosure statement, At Home faced a series of unprecedented challenges that necessitated the bankruptcy filing, including lingering effects of the COVID-19 pandemic, shifting consumer preferences toward e-commerce, inflationary pressures, and most notably, the severe impact of recent tariff policy changes on its supply chain and cost structure.
"The uncertainty surrounding tariffs has caused concern for At Home, which employs an early sourcing method whereby the Company sources seasonal goods such as for Halloween and Christmas from foreign product partners months in advance," the disclosure statement explains.
The document provides insights into At Home's business model, which heavily relies on imported products, with approximately 90% of its merchandise sourced from overseas. This dependence made the company particularly vulnerable to the tariff policies implemented in early 2025. The situation deteriorated significantly in April when the U.S. government announced a 145% tariff on all Chinese goods, followed by China's reciprocal 125% tariff. Though these rates were later reduced, the damage to At Home's financial position had already been substantial.
The retailer's Restructuring Support Agreement (RSA) with an ad hoc group of lenders led by Redwood Capital Management, LLC, Farallon Capital Advisors, L.L.C., and Anchorage Capital Advisors, L.P. underpins the reorganization plan. Under the terms outlined in the disclosure statement, At Home has secured debtor-in-possession (DIP) financing comprised of a $200 million new money commitment and a $400 million roll-up of existing obligations to provide funding throughout the bankruptcy process.
Post-reorganization, DIP lenders will receive 98% of the reorganized common stock, while holders of ABL facility claims will receive payment in full. The plan also addresses the company's real estate footprint, with At Home initially identifying 24 stores for closure and leaving open the possibility of additional locations being shuttered as the bankruptcy proceeds.
The disclosure statement describes how Brad Weston, who joined as CEO in June 2024, has been leading efforts to overhaul the company's operations, including revamping the sourcing strategy, reframing the business's focus on product value over price, and accelerating digital engagement capabilities. These initiatives, however, were hindered by the challenging macroeconomic environment and new tariff policies.
According to the disclosure statement, the reorganization plan includes the appointment of a new board of directors consisting of seven members, including the CEO and six directors selected by the creditors taking control of the company. The company expects to emerge from bankruptcy within approximately 14 days after court confirmation of the plan.
At Home has scheduled a confirmation hearing for September 29, 2025, with creditor voting on the plan due by September 16, 2025. The case is being administered in the U.S. Bankruptcy Court for the District of Delaware under Case No. 25-11120, with Judge John K. Sherwood presiding.
The company is represented by Kirkland & Ellis LLP as lead restructuring counsel, with Young Conaway Stargatt & Taylor, LLP serving as co-counsel. PJT Partners LP is acting as investment banker and AlixPartners, LLP as financial advisor.
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