At Home Group Inc. has announced a significant restructuring initiative aimed at strengthening its financial footing and positioning itself for future success while maintaining customer service. The company has entered into a Restructuring Support Agreement (RSA) with lenders holding over 95% of its debt, paving the way for a prearranged financial restructuring that will eliminate almost all of its nearly $2 billion in funded debt. This process will also involve a capital infusion of $200 million to support operations throughout the restructuring period.
The restructuring aligns with a larger strategy to enhance operational efficiency, optimize inventory management, and drive sustained sales growth. CEO Brad Weston emphasized the importance of this agreement, stating it represents a critical step for At Home as they focus on creating value for customers while navigating the challenges posed by a dynamic trade environment impacted by tariffs.
As part of the restructuring process, At Home has initiated voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of Delaware. Despite this, the company reassures customers that it will continue to operate normally, providing affordable design and decorating solutions both in-store and online.
Additionally, At Home is set to secure $600 million in debtor-in-possession financing, combining the $200 million capital infusion and a $400 million “roll up” of existing debt. This financing, alongside revenue from ongoing operations, will ensure sufficient liquidity during the restructuring.
The company remains committed to its obligations to employees, vendors, and suppliers, ensuring wages and benefits continue without interruption and maintaining full payment terms under normal conditions post-filing. This optimistic approach positions At Home not only to emerge from the Chapter 11 process more robust but also to invest in strategic initiatives that enhance its market standing.
The comprehensive plan underscores At Home’s belief that a customer’s home should reflect their personal style and aims to inspire and engage through accessible design solutions. With 260 stores across 40 states, At Home is poised to strengthen its role as a key player in the home décor retail market.
Overall, this restructuring effort reflects a hopeful outlook for At Home, paving the way for renewed growth and an enhanced customer experience in the future.