Big retailers in the US are closing their doors at a truly unprecedented rate. One might argue that the main reason is that there are a lot of them, and that it is the saturation of the market along with the economic downturn that we have experienced after COVID compounded by the Trump tariffs that are making the situation unsustainable. But, the reality is that most of these physical stores have been struggling for a while now due to the advent of online shopping and these are just the final straws that are forcing their hand. The latest to file for Chapter 11 Bankruptcy is Texas-based home goods chain At Home, a very popular décor store not just in the lone star state, but also in 40 other states.
While we do not know yet if the company will completely shut its doors, we do know that they will not keep many of the 262 stores in 40 states that they have as of right now. Unlike other industry heavyweights, At Home has only been in business for a little less than 50 years, which has made them at the same time a lot more willing to change but also a lot less established.
Both of these have positives and negatives, but the fact remains that they are not as profitable as they once were and that is hurting their bottom line.
At Home, one more retailer going down
Their intention seems to be to tr to survive this very complicated situation, and, in order to do that, they filed for Chapter 11 protection last Monday, June 16. Unlike other filings this one was made with the express purpose of restructuring its operations, and they have started said restructuring with a few confirmed store closures. The stores that they are planning to shut down are some of the most underperforming ones, and there are 26 of these scattered across 13 states.
To avoid leaving their employees in the lurch, they have made these announcements with plenty of time so that everyone has the ability to make arrangements, but as of today, the final day of these stores will be September 30, 2025 unless something else changes in the meantime. The stores that will close in every state are:
- California: Chico, Costa Mesa, Foothill Ranch, Long Beach, Pasadena, San Jose, Tustin, Sacramento
- Florida: North Miami
- Illinois: Crestwood, Peoria
- Massachusetts: Dedham, Shrewsbury
- Minnesota: Rochester
- Montana: Billings
- New Jersey: Middletown Township, Princeton, Ledgewood
- New York: Rego Park, Bronx
- Pennsylvania: Pittsburgh
- Virginia: Leesburg, Manassas
- Washington: Bellingham, Yakima
- Wisconsin: Wauwatosa
In addition, the company will close six other non-operating locations in Redding, CA; St. Paul, MN; Clackamas and Salem, OR; and Everett and Lacey, WA.
While this is surprising, as it has been with every other retailer that has recently closed like Big Lots, Joann Fabrics or Michaels, those paying attention will have noticed that At Home had already closed six stores before this new wave of closures in the last year. As court documents explain “Given the challenges affecting retail and operating costs, many At Home stores are operating below their potential,” and that is no way to run the business.
Under the terms of its restructuring plan, At Home will shift ownership to a consortium of investment firms located in New York and San Francisco. The deal involves wiping out close to $2 billion in debt and securing a $200 million cash infusion to maintain operations throughout the reorganization process. This means that they plan to honor return policies, loyalty programs like Insider Perks, and the use of gift cards until the process ends and new strategies need to begin, so if you have some unused perks, now might be the time to collect them.