Popular home decor retailer prepares to file for bankruptcy: report
At Home Group Inc., a home decor retailer headquartered in Texas, is reportedly preparing to file for Chapter 11 bankruptcy protection in the coming weeks as it works to strengthen its liquidity.
The retailer — owned by private equity firm Hellman & Friedman — has faced a shortage of cash in recent months, exacerbated by the effects of U.S. tariffs and the global trade war, Bloomberg News reported.
On May 15, At Home missed its interest payment, and on May 23, it entered a forbearance agreement with its lenders. That agreement — which temporarily suspends payments — runs through June 30, people familiar with the matter told Bloomberg.
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"At Home is actively collaborating with our financial stakeholders and have put forbearance agreements in place with respect to certain interest payments under the company’s debt instruments," a spokesperson for At Home Group Inc. told Bloomberg. "These agreements provide us flexibility as we continue to take steps to position At Home for near and long-term success."
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The company, which has more than 250 stores across 40 states, currently has $17.3 million available under its asset-based facility, according to some of the people with knowledge of the matter. At Home’s first lien bond due in 2028 traded on May 8 at around 26.5 cents on the dollar, a decrease from 41.25 cents on Jan. 7, according to Bloomberg.
At Home has been searching for new overseas suppliers as the company tries to shift away from China amid concerns about tariffs, Bloomberg reported.
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Earlier this month, At Home Group Inc. announced it had appointed Brad Weston as its new CEO, effective June 3. Weston most recently served as CEO of Party City Holdings Inc., according to an announcement from the company.
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Hellman & Friedman declined to comment. At Home Group Inc. and PJT Partners Inc. did not immediately respond to FOX Business’ request for comment.