At Home Group Inc., the national home décor and furnishings retailer, announced Monday it has filed for Chapter 11 bankruptcy protection and will close 26 of its stores.
The company said the closures come amid a financial restructuring plan aimed at ensuring the company’s long-term stability.
At Home stated it has entered into a Restructuring Support Agreement with lenders holding more than 95 percent of its debt. The agreement outlines a prearranged restructuring that will eliminate nearly all of At Home’s approximately $2 billion in funded debt and provide $200 million in new capital to aid in the restructuring process.
“While we have made significant progress advancing our initiatives to date, we are operating against the backdrop of an increasingly dynamic and rapidly evolving trade environment as we navigate the impact of tariffs. The steps we are taking today to fully de-lever our balance sheet will improve our ability to compete in the marketplace in the face of continued volatility and increase the resilience of our business for the long term,” Weston said in the release.
To implement the restructuring agreement, At Home and certain subsidiaries have commenced voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of Delaware. The company said that it will continue to serve customers in-store and online during the process.
At Home has secured $600 million in debtor-in-possession financing, which includes the $200 million capital infusion and a “roll up” of $400 million in existing senior secured debt, the company said.
The company has filed customary “first-day” motions to ensure business operations continue as normal, including uninterrupted payment of employee wages and benefits and continued payment to vendors and suppliers for goods and services provided after the filing date.
As part of the restructuring, At Home will close 26 underperforming stores, including eight stores in California, three locations in New Jersey, two locations in New York, Illinois, Massachusetts, Virginia, and Washington, and one store in Florida, Minnesota, and Pennsylvania.
Kirkland & Ellis is acting as legal counsel, PJT Partners as financial advisor, AlixPartners as restructuring adviser, and Hilco Real Estate as real estate consultant for At Home.