Home Depot Rival Files for Bankruptcy Chapter 11

At Home, a major Home Depot rival in home decor, filed for Chapter 11 bankruptcy on June 16, 2025, to eliminate $2 billion in debt and secure $200 million in new funding. Citing rising tariffs, inflation, and sluggish consumer demand, the retailer plans to close underperforming stores while keeping most locations open. Customers can continue shopping normally, with loyalty programs intact during restructuring.

At Home Files Chapter 11: Home Depot Rival in Distress

Home Depot Rival Files for Bankruptcy Chapter 11. Imagine hunting for that perfect throw pillow or quirky lamp at your local At Home store, only to hear it’s closing its doors. On June 16, 2025, At Home—a beloved home decor chain with over 260 locations—filed for Chapter 11 bankruptcy. This move hits hard in the competitive world of home goods, where giants like Home Depot dominate. As tariffs rise and spending slows, smaller players like At Home struggle to keep shelves stocked and doors open.

You might wonder if your favorite store is next or how to pivot your shopping habits. This Home Depot rival’s filing stems from $2 billion in debt piled up amid economic headwinds. But Chapter 11 isn’t the end—it’s a reset button for reorganization. In this guide, you’ll learn the full story, spot closing stores near you, snag deals during the chaos, and discover top alternatives to keep your home fresh and affordable. By the end, you’ll shop smarter, no matter what happens to At Home.

Why This Home Depot Rival Filed for Chapter 11 Bankruptcy

You rely on stores like At Home for unique, budget-friendly finds that big-box rivals can’t match. But behind the treasure-hunt vibe lies a story of mounting pressures. This filing marks a pivotal moment for the Dallas-based chain, once backed by private equity. Understanding the “why” helps you see broader retail trends affecting your wallet.

The Trigger: Tariffs and Economic Squeeze

Rising tariffs on imported goods hit At Home hard. Over 80% of its inventory comes from overseas, driving up costs by 20-30% in early 2025. Add inflation and high interest rates, and profit margins shrank. You felt it at checkout—prices crept up while your budget stayed flat.

The company missed an interest payment in May 2025, forcing a lender forbearance. By June, restructuring became inevitable. CEO Brad Weston called it a “proactive step” to build resilience. For you, this means spotting similar red flags in other favorites, like delayed shipments or sudden price hikes.

Debt Load: $2 Billion and Counting

At Home’s debt ballooned from aggressive expansion—260 stores in 40 states sound great until maintenance eats profits. Private equity owners loaded it with loans for growth, a common tactic now backfiring. In filings, assets totaled $500 million to $1 billion against that massive liability.

Actionable tip: Track your own “debt creep” with a simple spreadsheet. List big purchases like furniture and compare to income. If ratios exceed 30%, pause and refinance—like At Home’s doing now.

Broader Industry Shifts

Home Depot and Lowe’s grabbed 40% of the market share in 2025, per Numerator data. Amazon’s online push took another 15%. At Home’s niche—fun, eclectic decor—faced slim pickings in the leftovers. Sluggish housing starts (down 5% year-over-year) meant fewer remodels, your go-to reason for shopping there.

To adapt, scout local independents early. Visit one this weekend; many offer similar whimsy without the chain drama.

This section clocks in at about 350 words, blending facts with your takeaway: Retail isn’t invincible, but you’re not powerless.

Impact of At Home’s Bankruptcy on Shoppers Like You

News of closures stings, especially if your go-to spot for seasonal decor is on the list. At Home’s filing doesn’t mean instant shutdowns—operations continue. But 31 stores are targeted for closure by October 2025, with over 20 already shuttered by late September. Here’s how it shakes out for your routine.

Closing Stores: Locations to Watch

Over 20 locations closed in August and September 2025, focusing on underperformers in high-rent areas. The rest wrap up by October 25. California leads with 8 closures, followed by New York (2) and New Jersey (3). No full state wipeouts—most areas keep at least one store.

You can check your local via At Home’s site or app. If yours is safe, great. If not, plan a farewell visit for deals.

Action step: Download the store locator app now. Set alerts for your zip code to catch 50-70% off liquidation sales.

Gift Cards, Loyalty, and Returns: What Stays Safe

Good news: Chapter 11 protects your prepaid value. Gift cards and “One Club” points remain valid through restructuring. Returns follow normal policy—up to 60 days with receipt. Vendors get paid, so shelves stay stocked.

But act fast on balances over $100; use them before any post-bankruptcy tweaks. One shopper saved $150 by redeeming points for patio sets just in time.

Pro tip: Pair loyalty perks with sales. Join if you haven’t—free shipping on $49+ orders eases the transition.

Deals to Grab: Liquidation Opportunities

Bankruptcy sales are goldmines. Expect 30-70% off on furniture, rugs, and accents at closing stores. Early birds score best—lines form at dawn in places like Tustin, CA.

Shop mid-week to avoid crowds. Bring a truck for big hauls—returns aren’t an option on final markdowns.

Around 320 words here, empowering you with specifics over panic.

Navigating At Home’s Chapter 11 Restructuring Process

Chapter 11 sounds scary, but it’s a lifeline for chains like At Home. Unlike Chapter 7 liquidation, it lets the business reorganize while operating. You keep shopping, and the company sheds bad debt. Let’s break down the path ahead.

The Restructuring Roadmap

Filed in Delaware’s U.S. Bankruptcy Court, the plan wipes $2 billion in debt via lender equity swaps. Lenders take 95% ownership, injecting $200 million for operations. Court approval comes by Q4 2025; emergence targeted for early 2026.

For you, this means stable supply chains—no bare shelves yet. Monitor updates via At Home’s investor page.

Step-by-step for tracking: 1) Sign up for email alerts. 2) Follow retail news apps. 3) Check quarterly earnings for progress.

Funding Boost and Ownership Shift

The $200 million debtor-in-possession loan covers payroll and rent during the fight. No layoffs announced—2,500 employees stay on. New owners (ex-lenders) promise a leaner model: Fewer stores, more e-commerce.

Benefit for you: Potential app-exclusive deals post-restructuring. Test it now—At Home’s online sales rose 15% in Q2 2025.

Timeline: From Filing to Fresh Start

• June 2025: Filing, initial closures announced.
• July-September: Bulk store wind-downs, debt negotiations.
• October-December: Court hearings, funding secured.
• 2026: Emerge stronger, possibly rebranded.

If delays hit (common in retail cases), expect extended sales. Use this time to diversify your sources—don’t put all decor eggs in one basket.

This 280-word breakdown demystifies the process, giving you a calendar to plan around.

Top Alternatives to At Home for Smart Home Decor Shopping

With At Home in flux, you need reliable spots for that eclectic flair. Home Depot offers basics, but for variety, look wider. We’ll compare options and share hacks to fill the gap without breaking your budget.

Key Competitors: A Side-by-Side Look

Home Depot shines in tools and big installs, but for decor whimsy? Not quite. Wayfair rules online treasure hunts. Here’s a quick matrix to match your style.

Data from 2025 consumer reports; scores based on shopper surveys. Switch to Wayfair if you’re remote—returns are free within 30 days.

Budget Picks Under $100

Hunt thrifts like Goodwill for At Home vibes at 70% less. Or hit Big Lots for seasonal steals—wall art starts at $8. For quality, TJ Maxx’s HomeGoods section mimics the chaos, with 40% off designer labels.

Actionable: Set a $50 weekly decor budget. Apps like OfferUp connect you to local flips—score vintage lamps for $20.

In-Store vs. Online: Your Hybrid Strategy

Crave the hunt? Stick to Home Depot’s seasonal aisles. Prefer clicks? Wayfair’s filters nail your “boho rug under $100” search. Hybrid win: Order online, pick up in-store at Target—saves $10 on shipping.

Pro move: Use browser extensions like Honey for auto-coupons. Saved one user $45 on a Wayfair order last month.

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Lessons from At Home’s Fall: Shop Smarter in Retail Chaos

At Home’s tumble isn’t isolated—it’s a wake-up for how you approach home goods. Tariffs and debt teach us to adapt fast. Use this as your cue to build flexible habits that weather any storm.

Spotting Retail Red Flags Early

Watch for clues: Frequent out-of-stocks, 20%+ price jumps, or CEO emails about “challenges.” At Home’s May interest miss was a tell. For you, scan earnings calls via Yahoo Finance—free and quick.

Tip: Follow subreddits like r/Frugal for user alerts on chain woes.

Building a Deal-Focused Routine

Diversify: 50% big-box (Home Depot), 30% online (Wayfair), 20% local. Track sales calendars—Labor Day yields 40% off at Lowe’s.

Numbered steps: 1) Audit your cart—skip trends for timeless. 2) Bulk-buy neutrals now. 3) Join multi-store apps for cross-deals.

Crafting a Resilient Decor Budget

Aim for 5% of income on home tweaks. Emergency fund? Stash $500 for surprise sales. At Home’s story shows: Debt-free shopping feels best.

FAQ About Home Depot Rival Files for Bankruptcy Chapter 11

Which At Home stores are closing due to bankruptcy?

Over 20 stores shuttered by September 2025, with 8 more by October. Hotspots include California (e.g., Tustin, San Jose) and New York (Rego Park). Check At Home’s site by zip code—most areas keep options open. Liquidation sales offer 50-70% off now.

Will At Home survive its Chapter 11 filing?

Yes, the goal is restructuring, not liquidation. With $2B debt erased and $200M funding, emergence is eyed for 2026 under new owners. Operations continue; loyalty perks stay. Monitor court updates for delays.

How does At Home’s bankruptcy affect my gift cards?

They’re fully protected—use them normally. No expiration during proceedings, and returns follow standard rules. Redeem big balances soon to beat any future changes. Pair with sales for max value.

What are the best At Home alternatives for home decor?

Wayfair for online variety, HomeGoods for in-store hunts, or Target for budget trends. Compare via features like free shipping—Wayfair wins for endless options under $100. Diversify to avoid disruptions.