At Home Group Inc., the home-decor retailer backed by private equity firm Hellman & Friedman, is preparing to file for bankruptcy under Chapter 11 in the coming weeks as it scrambles to shore up its liquidity, according to a report.
The company, which operates more than 260 stores across 40 US states and territories, has been navigating a worsening financial situation, compounded by the effects of US tariffs and ongoing uncertainty around global trade policies.
At Home missed an interest payment due on May 15 and subsequently entered a forbearance agreement with its lenders on May 23, people with knowledge of the situation told Bloomberg News on Wednesday.
That agreement, which offers a temporary reprieve from creditor action, runs through June 30.
“At Home is actively collaborating with our financial stakeholders and have put forbearance agreements in place with respect to certain interest payments under the company’s debt instruments,” a spokesperson for the company said in an emailed statement to Bloomberg News.
“These agreements provide us flexibility as we continue to take steps to position At Home for near and long-term success.”
Last month, Bloomberg News reported that the company was weighing several restructuring options, and while a bankruptcy filing was seen as increasingly likely, no final decision had been made.
Representatives for Hellman & Friedman and PJT Partners Inc., which is advising the retailer, were not immediately available to comment.
At Home has been grappling with liquidity constraints for months. As of now, it has roughly $17.3 million available under its asset-based lending facility, according to people familiar with the matter.
Its $600 million first-lien term loan is trading at distressed levels — most recently quoted at just 38 cents on the dollar, Bloomberg reported.
The retailer has also been seeking to restructure its balance sheet. In April, it was in discussions with some lenders over a proposal that could potentially transfer ownership of the company to creditors. At the time, sources said the company was evaluating multiple options to address its mounting financial pressures.
Tariffs imposed by President Donald Trump have played a central role in disrupting the company’s turnaround strategy.
Even before the administration’s April 2 tariff announcement, At Home had begun shifting manufacturing and supply chains away from China to mitigate exposure.
In recent weeks, the company has accelerated its efforts to engage suppliers in other countries, including India.
Despite a temporary liquidity boost in May 2023 — when the company raised $200 million through the sale of five-year senior secured notes and exchanged $442 million in unsecured bonds for payment-in-kind toggle notes — At Home has struggled to maintain revenue growth amid high borrowing costs and declining consumer demand.
