At Home Retailer Files for Bankruptcy, Plans to Close 26 Stores
The challenges of running a business in today’s economy are becoming increasingly difficult, with rising costs and inflation hitting both small and large companies. Many retailers are struggling to stay afloat, and now, a major home goods chain is making drastic changes to survive.
At Home, a Texas-based home decor retailer, has filed for bankruptcy and announced plans to close 26 stores across the U.S. The company cited “broader economic and retail-specific market pressures” as key reasons for its financial struggles. This move follows similar struggles faced by other big-box retailers like Big Lots, Joann Fabrics, Macy’s, and Party City.
Which Locations Are Closing?
The 26 stores set to close are spread across multiple states, including California, New York, Florida, Minnesota, Washington, New Jersey, Pennsylvania, Massachusetts, Illinois, Virginia, Montana, and Wyoming. The closures are expected to be completed by September 30.
Before the official bankruptcy filing, At Home had already shut down six stores, blaming “persistent inflation” and the impact of rising tariffs. Court documents revealed that the company analyzed its store performance and identified underperforming locations that needed to be cut.
Company Background and Financial Struggles
Founded in 1979 as Garden Ridge Pottery, At Home expanded from a single store in Schertz, Texas, to more than 250 locations nationwide. However, mounting debt and economic pressures have forced the company to take drastic measures.
With $2 billion in debt, At Home is looking to restructure its finances. The company expects ownership to shift to hedge funds and investment firms based in New York City and San Francisco. Additionally, it is seeking a $200 million cash infusion to stabilize operations.
Consumer Spending Decline Adds to Retail Woes
The struggles of At Home reflect a broader trend in retail. The Commerce Department recently reported a nearly 1% drop in consumer spending in May, following a 0.1% decline in April. This slowdown signals potential trouble for the economy.
“Any time you get a pullback in consumer spending, it tends to lead to a slowdown in overall GDP and broader economic activity,” said Gregory Daco, an economist at Ernst & Young. “The real risk is we have the onset of a more pronounced slowdown in the economy.”
Final Thoughts: A Changing Retail Landscape
As businesses adapt to shifting consumer habits and economic pressures, some will inevitably struggle to survive. At Home’s bankruptcy and store closures highlight the harsh realities facing retailers today. While the company hopes to recover with new ownership and financial backing, the broader retail industry must brace for further challenges ahead.
For shoppers, this means fewer brick-and-mortar options and potentially higher prices as companies adjust to new economic conditions. The future of retail remains uncertain, but one thing is clear—businesses must evolve or risk being left behind.
Opinion: The Retail Shakeout Continues
The bankruptcy of At Home is another sign that the retail industry is undergoing a major transformation. Inflation, rising costs, and changing consumer behaviors are forcing companies to rethink their strategies. While some retailers will adapt and thrive, others—especially those burdened with debt—may not survive. The closures of these 26 stores are just the latest casualties in an ongoing retail shakeout. For consumers, this could mean fewer shopping options and higher prices as surviving retailers pass on costs. The next few years will be critical for the industry, and only the most resilient businesses will come out on top.
