The home decor world just got a shake-up with the news that At Home, a beloved retailer with 260 stores across 40 states, has filed for Chapter 11 bankruptcy. This Texas-based chain, known for its affordable furniture, rugs, and kitchenware, is grappling with a perfect storm of financial woes, largely tied to U.S. tariff policies and a dip in consumer spending. For shoppers who love sprucing up their spaces on a budget, this development raises questions about the future of At Home and its sprawling network of stores. Let’s dive into what’s happening, why it’s happening, and what it means for fans of this home goods giant.
Why At Home Is Struggling
At Home’s financial troubles didn’t pop up overnight. The retailer, originally called Garden Ridge when it opened its first store in 1979, has been wrestling with over $2 billion in debt. A missed interest payment in May 2025 was a red flag, signaling deeper issues. The company entered a forbearance agreement with lenders, giving it until June 30 to sort things out, but bankruptcy became the clear path forward. The filing, announced on June 16, 2025, aims to restructure the business, with lenders like Redwood Capital and Farallon Capital set to take over.
The biggest culprit? Tariffs. At Home sources a hefty chunk of its inventory from China, where tariffs have spiked costs. At one point, U.S. tariffs on Chinese goods hit 145% before a recent agreement slashed them to 30%. Even with this reduction, the damage to pricing and supply chains lingers. Combine that with a pullback in discretionary spending—folks just aren’t splurging on throw pillows or patio sets like they did during the pandemic—and At Home’s budget-friendly model is under serious strain.
The Ripple Effect of Tariffs on At Home
Tariffs aren’t just a buzzword; they’re a game-changer for retailers like At Home. The chain’s reliance on imported goods means higher costs get passed down the line, squeezing margins and forcing tough choices. CEO Brad Weston, who joined last year, called the trade environment “dynamic and rapidly evolving.” He’s not wrong. The U.S.-China trade deal in May 2025 eased some pressure, but logistics experts say the supply chain damage is done. Smaller retailers, especially, feel the pinch, as they lack the pricing power to absorb these costs or raise prices without losing customers.
At Home isn’t alone in this mess. The home goods sector has taken a beating, with chains like Bed Bath & Beyond, Big Lots, and The Container Store also filing for bankruptcy in recent years. The pandemic sparked a home decor boom as people nested, but inflation and economic uncertainty have since curbed that enthusiasm. For At Home, the combination of debt, tariffs, and cautious shoppers has created a tough road ahead.
What’s Next for At Home’s Stores?
With 260 stores nationwide, including two in Tampa Bay, At Home’s bankruptcy filing has shoppers and employees on edge. The company plans to keep operating during the restructuring, but reports suggest around 20 stores could close. No official list of closures has been released, so it’s unclear which locations might shutter. The goal is to eliminate nearly $2 billion in debt and secure $200 million in new capital, but transitions like this often come with tough cuts.
For now, At Home is signaling optimism. Weston says the restructuring will make the company more competitive despite the volatile trade landscape. Shoppers might even spot some deals, as bankruptcy often leads to promotions and discounts to clear inventory. But in the long run, experts warn that tariffs could keep prices high across the home goods sector, making those bargain finds harder to come by.
The Bigger Picture for Home Goods Retail
The struggles at At Home reflect a broader trend in retail. The home goods industry, once a pandemic darling, is now navigating a post-boom reality. Chains that thrived when everyone was redecorating their living rooms are now facing higher costs and pickier customers. Tariffs, especially on Chinese goods, have disrupted supply chains, forcing retailers to rethink sourcing. At Home has explored suppliers in India and other countries since late 2024, but shifting an entire supply chain isn’t quick or cheap.
This bankruptcy also highlights the human side of retail woes. Employees at At Home’s stores and distribution centers face uncertainty, and communities may lose a go-to spot for affordable decor. Shoppers, meanwhile, are left wondering if their local store will survive or if they’ll need to hunt for alternatives.
Looking Ahead: Can At Home Recover?
At Home’s story isn’t over yet. Chapter 11 bankruptcy is about restructuring, not liquidation, so there’s hope the chain can emerge leaner and stronger. The involvement of major lenders suggests confidence in the brand’s potential, but success hinges on navigating the tariff landscape and winning back cost-conscious shoppers. For now, the retailer’s focus is on stabilizing operations and adapting to a world where trade policies and consumer habits are in flux.
If you’re a fan of At Home, keep an eye on local stores for updates and potential deals. Visit their website or pop into a location to show support while they weather this storm. Your next home decor haul might just help keep this chain afloat!