At Home Group: Tariff Shock Triggers $2B Debt Restructuring

At Home Group Inc., the Plano, Texas-based big-box home decor retailer operating approximately 260 stores across 40 states, filed for chapter 11 bankruptcy protection on June 16, 2025, in the U.S. Bankruptcy Court for the District of Delaware. The filing came after tariffs on Chinese imports rose to 145% and the company missed a $200 million interest payment, leaving the retailer with $14 million in cash. This marked the company's second chapter 11 in its 46-year history—the predecessor company, Garden Ridge, filed for bankruptcy in 2004 and emerged the following year. At Home entered bankruptcy backed by a restructuring support agreement with holders of 96% of the company's nearly $2 billion in funded debt, and emerged from chapter 11 on October 24, 2025, about four and a half months after filing. The restructuring converted DIP financing to equity, cancelling Hellman & Friedman's $2.8 billion investment from four years earlier and transferring ownership to the lender group led by Redwood Capital Management, Farallon Capital, and Anchorage Capital.

Debtor(s)	At Home Group Inc.
Court	U.S. Bankruptcy Court, District of Delaware
Case Number	25-11148 (lead case)
Judge	Hon. J. Kate Stickles
Petition Date	June 16, 2025
Confirmation Date	September 30, 2025
Effective Date	October 24, 2025
RSA Support	96% of first lien debt
Total Funded Debt	~$1.998 billion
DIP Facility	$600 million ($200M new money + $400M roll-up) (agent: GLAS USA LLC)
Stores at Filing	~260 in 40 states
Stores Post-Emergence	~230
Employees	~7,170
New Owners	Redwood Capital, Farallon Capital, Anchorage Capital

Company Background and Corporate History

At Home traces its origins to 1979 when Garden Ridge Pottery opened its first store in Schertz, Texas, according to the First Day Declaration. The company operated as a regional retailer for decades with large-format home decor stores. In 2004, the company filed for chapter 11 bankruptcy protection and emerged in 2005.

Corporate ownership transitions. AEA Investors acquired Garden Ridge in October 2011 for $715 million. In December 2012, the private equity firm hired Lee Bird as CEO. Bird, a retail executive who had previously served as Managing Director at The Gores Group, Group President of Nike Affiliates, COO of Gap, and CFO of Old Navy, spent $20 million revitalizing the brand and announced a complete rebrand to "At Home" in June 2014, converting all 71 stores to the new identity by 2015.

Transformation under Lee Bird. Under Bird's leadership, At Home expanded. The company grew from 58 stores to 268 stores and increased revenue from $364 million to nearly $2 billion. The August 2016 NYSE listing provided capital for continued expansion, and the company opened its 100th store that same year. By 2019, At Home had reached 200 stores, and by 2022, it operated 250 locations across 40 states. Bird retired in December 2023 after 11 years at the helm, with Brad Weston appointed as his successor effective June 2024.

Hellman & Friedman take-private transaction. In May 2021, Hellman & Friedman announced its acquisition of At Home for $2.8 billion, including debt assumption. Stockholders received $36.00 per share in cash—a 17% premium to the closing price on May 4, 2021, and approximately 25% premium to the 30-day volume-weighted average price. Goldman Sachs served as financial advisor to the Special Committee, while Guggenheim Securities advised Hellman & Friedman. The transaction closed on July 23, 2021, taking At Home private after five years on the NYSE.

Business model and operations. At filing, At Home operated as a large-format home decor retailer with approximately 260 stores across 40 states and approximately 7,170 employees, as detailed in the First Day Declaration. The company's stores, typically occupying 100,000+ square feet, offered a broad assortment of home decor items. At Home imported approximately 90% of its merchandise, with heavy reliance on Chinese suppliers.

Path to Chapter 11

Tariff Escalation.

Beginning in January 2025, tariffs on Chinese imports started at 10%, then increased. By early February, the rate had doubled to 20%. On April 10, 2025, a cumulative 145% tariff on Chinese goods took effect. Tariffs were temporarily reduced to 55% by June 2025.

With approximately 90% of merchandise imported and heavy sourcing from China, At Home was exposed to trade policy changes. The company's CFO described At Home as "significantly impacted" by the tariff escalations, and the uncertainty of ongoing U.S. trade negotiations added pressure on the company's operations.

Liquidity Crisis and Interest Payment Default.

By early 2025, At Home faced limited liquidity. The company had $14 million in cash as of fiscal year ending January 25, 2025, with $17 million available under its $675 million asset-based lending facility. New management, including CFO Jeremy Aguilar who had been appointed in December 2024, sought to improve liquidity and renegotiate the prepetition ABL credit agreement ahead of its July 2026 maturity date. The ABL agent had raised concerns about liquidity constraints and the company's ability to pay upcoming maturities.

On May 15, 2025, At Home missed a key interest payment on $200 million in 11.5% senior secured notes. On May 23, 2025, the company entered a forbearance agreement with lenders that ran through June 30, 2025.

Prior Liability Management.

The capital structure at filing reflected debt from the 2021 Hellman & Friedman acquisition and additional leverage from a "double dip" liability management exercise in May 2023.

Capital Structure at Filing

At Home entered bankruptcy with approximately $1.998 billion in total funded debt across multiple tranches. The capital structure reflected both the debt assumed in the Hellman & Friedman acquisition and subsequent liability management transactions.

Maturities were clustered in 2026-2029. The Disclosure Statement outlined plans to eliminate $1.62 billion of the total funded debt through the restructuring.

Prepackaged Restructuring and RSA

At Home's chapter 11 case proceeded as a prepackaged restructuring, with the Restructuring Support Agreement executed on June 16, 2025—the same day as the bankruptcy petition. The RSA had the support of holders of approximately 96% of the company's first lien debt.

Ad Hoc Group members. The supporting lender group included Redwood Capital Management, LLC; Farallon Capital Advisors, L.L.C.; Anchorage Capital Advisors, L.P.; Silver Rock Financial LP; Aryeh Capital Management Ltd.; and Glendon Capital Management L.P. Silver Rock, Aryeh, and Glendon had joined the ad hoc group in May 2025 during forbearance negotiations.

The RSA contemplated several key terms: a chapter 11 filing funded by consensual use of cash collateral and a DIP facility; conversion of the DIP facility to equity upon emergence; elimination of substantially all of the nearly $2 billion in funded debt; and provision of $200 million in new capital to fund the reorganized company's operations.

DIP Financing.

The DIP financing package totaled $600 million, as described in the DIP Motion, comprising $200 million in new money and a $400 million roll-up of existing first lien debt. GLAS USA LLC served as DIP Agent. The court entered the Interim DIP Order on June 17, 2025, the day after filing, with the Final DIP Order following on July 18, 2025.

The DIP lenders received 98% of the reorganized company's common stock upon emergence, subject to dilution by management incentive plan shares.

Plan of Reorganization and Creditor Treatment

The debtors filed their initial Plan of Reorganization and Disclosure Statement on July 7, 2025. An Amended Plan followed on August 16, 2025, with the court entering the Disclosure Statement Approval Order on August 18, 2025. The Second Amended Plan was filed on September 29-30, 2025, and the Confirmation Hearing was held on September 30, 2025, with the Confirmation Order entered the same day.

Classification and Treatment.

Under the confirmed Plan, DIP lenders received 98% of the reorganized equity, other first lien holders received 2%, and the existing equity sponsor's interests were cancelled.

Post-Emergence Ownership.

Redwood Capital Management was designated to appoint four directors to the reorganized company's board, establishing the new ownership's governance control. The ownership transition was completed on the Effective Date of October 24, 2025.

Unsecured creditor treatment. General unsecured creditors received distributions through an Unsecured Claims Distribution Trust established under the plan. Recovery for unsecured claims depended on available assets after satisfaction of secured and priority claims.

Key Plan Milestones.

Store Closures and Operational Restructuring

At Home implemented a store closure program during the bankruptcy that evolved over the course of the case. The company initially announced 26 store closures at filing, later rescinded 2 locations from the closure list, then added 6 more closures on August 1, 2025, bringing the total to approximately 30 stores across 15 states.

California had 8 of 13 At Home locations closed—a 62% reduction in the state's footprint. Additional closures affected stores in Michigan, New Jersey, Indiana, Illinois, Iowa, and Utah. The store rationalization reduced the chain from approximately 260 stores to approximately 230 post-restructuring.

Professional Retentions and Fees

The debtors and creditor constituencies retained professional teams to navigate the restructuring.

Industry Context: Home Goods Retail Distress

At Home's bankruptcy occurred during a period of higher corporate bankruptcy filings in 2025. Corporate bankruptcies rose to 717 filings through November 2025—levels not seen since 2010—representing a 14% increase from 2024.

Recent retail bankruptcies. At Home joined a list of home goods retailers that sought chapter 11 protection in recent years: Bed Bath & Beyond, Big Lots, The Container Store, Joann, Party City, and Conn's filed for bankruptcy.

Tariff exposure. At Home imported approximately 90% of its merchandise, with heavy reliance on Chinese suppliers. When tariffs on Chinese goods reached 145% in April 2025, the company's import costs increased.

Consumer spending dynamics. Inflationary pressures and economic uncertainty contributed to reduced foot traffic at home decor retailers, as consumers prioritized essential spending over discretionary purchases.

Hellman & Friedman Equity Outcome

The At Home bankruptcy cancelled the equity investment of private equity sponsor Hellman & Friedman. The firm acquired At Home for $2.8 billion in July 2021, taking the company private. Less than four years later, that entire equity investment was cancelled in the bankruptcy, with the restructuring leaving H&F with 0% recovery.

Key Timeline

Frequently Asked Questions

What is At Home and why did it file for bankruptcy?

At Home is a big-box home decor retailer that operated approximately 260 stores across 40 states at the time of filing. The company filed chapter 11 after tariffs on Chinese imports rose to 145%, combined with limited liquidity that left it with $14 million in cash and a missed $200 million interest payment. With approximately 90% of merchandise imported from abroad and heavy reliance on Chinese suppliers, At Home was exposed to tariff increases in 2025.

How much debt did At Home have at filing?

At Home entered bankruptcy with approximately $1.998 billion in total funded debt, including a $579 million term loan, $378 million ABL facility, $300 million in senior secured notes, $200 million in Cayman Notes, $483 million in Exchange Notes, and $58 million in senior unsecured notes. The restructuring eliminated substantially all of this funded debt.

Who owns At Home after emergence?

DIP lenders—including Redwood Capital Management, Farallon Capital, and Anchorage Capital—converted their $600 million DIP financing to 98% of the reorganized company's equity. Other first lien holders received 2%. Hellman & Friedman's equity was completely cancelled. Redwood Capital was designated to appoint four directors to the reorganized board.

What happened to Hellman & Friedman's investment?

Hellman & Friedman acquired At Home for $2.8 billion in July 2021, taking the company private from the NYSE. Less than four years later, their entire equity investment was cancelled in the bankruptcy, resulting in complete loss of their stake.

How many stores closed in the bankruptcy?

Approximately 30 stores closed across 15 states during the restructuring. California had 8 of 13 locations closed. At Home retained approximately 230 stores post-restructuring.

How long did the bankruptcy case take?

At Home moved from petition filing (June 16, 2025) to emergence (October 24, 2025) in approximately 4.5 months. The RSA executed on the petition date had support from holders of 96% of first lien debt.

What was the RSA structure?

The Restructuring Support Agreement, executed on the petition date with holders of 96% of first lien debt, provided for $600 million in DIP financing ($200 million new money, $400 million roll-up) that would convert to 98% of the reorganized equity upon emergence. The RSA also contemplated elimination of substantially all of the nearly $2 billion in funded debt.

Is this At Home's first bankruptcy?

No. This is the company's second chapter 11 filing. The predecessor company, Garden Ridge, filed for bankruptcy in 2004 and emerged in 2005. The company has now restructured twice in its 46-year history.

What happened to unsecured creditors?

General unsecured creditors received distributions through an Unsecured Claims Distribution Trust established under the plan. Recovery for unsecured claims depended on available assets after satisfaction of secured and priority claims.

Why were tariffs so impactful to At Home specifically?

At Home imported approximately 90% of its merchandise, with heavy reliance on Chinese suppliers. When tariffs on Chinese goods reached 145% in April 2025, the company's import costs increased.

Read more chapter 11 case research on the ElevenFlo blog.