Retailer At Home exits bankruptcy protection

January 2026 | DEALFRONT | BANKRUPTCY & CORPORATE RESTRUCTURING

Financier Worldwide Magazine

January 2026 Issue

Home décor and furnishings retailer At Home Group has successfully completed its court-supervised restructuring and emerged from Chapter 11 bankruptcy, marking a significant milestone in its turnaround strategy.

The company filed for bankruptcy in June 2025, citing tariffs, supply chain challenges, and consumer uncertainty as key factors behind its financial distress. Following a comprehensive restructuring process, At Home has eliminated nearly all of its $2bn in funded debt and secured $500m in new exit financing. Ownership has transitioned to a consortium of lenders, including funds affiliated with Redwood Capital Management LLC, Farallon Capital Management LLC and Anchorage Capital Advisors LP.

“We are officially starting our next phase with renewed financial strength, flexibility and momentum,” said Brad Weston, chief executive of At Home. “We are taking decisive actions to become more relevant, more inspiring and more connected to our customers. This new chapter redefines what At Home can be – a brand that helps customers design and create spaces that reflect who they are and how they live.”

Mr Weston expressed gratitude to team members, vendor partners, loyal customers and the company’s new owners for their support during the restructuring. He emphasised that At Home is well-positioned to serve customers throughout the holiday season, both in-store and online.

As part of its governance changes, Mr Weston and Andrew Kilbourne of Redwood Capital Management have joined At Home’s board of directors. Industry veterans John Eck, former chief executive of Mattress Firm, and Karen Stuckey, who spent 18 years at Wal-Mart and currently serves on the board of Gildan, have also been appointed. “The company’s commitment to customer centricity and delivering fresh, inspiring assortments positions it for an exciting future,” said Mr Eck.

Headquartered in Dallas, Texas, At Home now operates 229 stores across 39 states, following the closure of 31 underperforming locations during the restructuring process. The retailer continues to offer a wide range of home décor, furniture, seasonal decorations and related products. Despite the challenges of tariffs and inflation, At Home maintained operations throughout its bankruptcy proceedings and is now focused on profitable growth.

The restructuring also includes a renewed focus on digital transformation, with plans to enhance e-commerce capabilities and integrate advanced analytics to improve inventory management and customer experience. At Home intends to leverage technology-driven insights to optimise pricing strategies and personalise marketing campaigns, ensuring competitiveness in an evolving retail landscape.

The company’s strengthened financial position provides additional resources to invest in strategic initiatives, including assortment innovation and enhanced customer engagement. At Home aims to evolve its product mix with new and reimagined designs, reinforcing its position as a destination for affordable and stylish home solutions.

Advisers supporting the restructuring included Kirkland & Ellis LLP as legal counsel, PJT Partners as financial adviser, AlixPartners as restructuring adviser, and Hilco Real Estate as real estate consultant. Joele Frank, Wilkinson Brimmer Katcher served as strategic communications adviser, while Dechert LLP and Evercore Group LLC advised the ad hoc lender group.

“We are proud to partner with the At Home management team as they move forward from a position of strength and renewal,” said Sean Sauler and Ruben Kliksberg, co-chief investment officers at Redwood Capital Management. “Their commitment to strategic growth, innovation and an optimised business model positions At Home for long-term success.”

The US Bankruptcy Court for the District of Delaware confirmed At Home’s plan of reorganisation on 30 September 2025, and the company reached its effective date on 24 October. The court entered its final decree closing the Chapter 11 cases on 17 November, officially concluding the process and enabling At Home to focus on its next chapter of growth.

Fraser Tennant