Is the American dream of affordable home decor crumbling under economic pressures? At Home, a Texas-based retailer with 200 stores nationwide, is shuttering more locations as it battles to emerge from Chapter 11 bankruptcy, signaling deeper troubles in the home furnishings sector.
According to the Daily Mail, this story boils down to a struggling chain closing at least 32 stores by likely September 2025, grappling with high costs, tariffs, and a brutal retail landscape.
Rumors of financial distress at At Home surfaced as early as mid-April 2025. Reports at the time highlighted a staggering debt load exceeding $2 billion. Between 16 and 35 percent of the company’s bills were overdue before filing for bankruptcy, per Creditsafe analysis.
The situation escalated in June 2025 when At Home officially entered Chapter 11 bankruptcy. Alongside this filing, the company announced plans to close 20 stores nationwide. This was a clear signal of distress in an industry already battered by economic headwinds. Now, an additional six stores have been added to the closure list. This brings the total to at least 32 locations expected to shut down by September 2025. It’s a stark reminder of how quickly fortunes can turn in retail.
At Home isn’t just fighting internal demons; it’s up against fierce competition. Rivals like IKEA and HomeGoods in physical retail, plus online giant Wayfair, are outmaneuvering the chain on price and selection. As Neil Saunders of GlobalData put it, “They have way too much debt.”
The broader economic environment isn’t helping either. Declining U.S. home sales mean fewer consumers are buying decor items like At Home’s $30 rugs or $450 chairs. Add to that high operational costs and a pricey workforce, and margins get squeezed tight.
Then there’s the tariff trap. At Home sources most of its inventory from China, where products face a hefty 30 percent tariff rate. CEO Brad Weston noted they’re navigating an “increasingly dynamic” trade environment due to these costs.
Since late 2023, the company has tried pivoting away from Chinese suppliers. Efforts to build ties with manufacturers in India are underway, though complicated by a heated U.S.-India trade dispute over Russian oil. It’s a slow shift with no guaranteed payoff.
At Home isn’t alone in its struggles—far from it. Since 2022, peers like Big Lots, True Value, and Bed Bath & Beyond have also filed for Chapter 11 protection. This sector is a minefield of failing business models and shifting consumer habits.
Consumers themselves are under pressure, as Tim Hynes of Debtwire observed: “Consumers are feeling the pinch.” High interest rates and lingering inflation have depleted savings for many. This forces more cautious, value-driven spending that hurts mid-tier retailers like At Home.
Hynes added a grim note on consumer finances. “Many have… accumulated credit card debt,” he said, painting a picture of households stretched thin. Retailers banking on discretionary purchases are feeling the fallout hardest.
Will more closures follow? Neil Saunders of GlobalData was blunt about the uncertainty, saying, “This remains to be seen.” At Home declined to comment when approached by DailyMail.com, leaving questions unanswered.
For investors and wealth-builders, this saga offers a lesson in retail risk. Diversify your portfolio beyond brick-and-mortar stocks, and keep an eye on sectors hit by tariffs and consumer slowdowns. Consider safer bets like index funds or consumer staples that weather economic storms better.
At Home’s fight for survival mirrors a broader reckoning in retail, where inefficiency and debt can be fatal. Free-market principles demand adaptation—cut costs, innovate, or perish. As tariffs and competition bite, only the leanest will endure in this cutthroat game.