At Home has filed for Chapter 11 protection in the U.S. Bankruptcy Court for the District of Delaware, part of an agreement with its lenders for a prearranged financial restructuring that will eliminate nearly $2 billion of the home furnishings retailer’s funded debt.
“Over the past several months, we’ve taken deliberate steps to strengthen the foundation of our business — sharpening our focus, elevating our customer value proposition and driving operational discipline,” said Brad Weston, CEO of At Home in a statement. “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.”
At Home, which will continue serving customers as it moves through the bankruptcy process, will receive a total of $600 million in debtor-in-possession financing for ongoing operations during the restructuring. The retailer expects that this process will end with a sale to the lenders supporting the Restructuring Support Agreement (RSA), which hold more than 95% of At Home’s debt. Lenders supporting the RSA and providing the new capital include Redwood Capital Management, Farallon Capital Management and Anchorage Capital Advisors.
“We are grateful to be moving forward with significant support from our financial stakeholders, which demonstrates their confidence in our business and our future strategy,” said Weston. “Upon emergence from the prearranged restructuring process, At Home will move forward with new owners and a meaningfully strengthened balance sheet. Importantly, this process will also further equip us with opportunities to invest in our strategic initiatives and to continue fortifying our business for the long term.”
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In May 2021 At Home sold itself to funds affiliated with Hellman & Friedman for $2.8 billion.
