COPPELL, Texas — As part of its restructuring strategy, At Home Group acknowledged that a change in ownership is possible.
The Coppell, Texas-based home décor specialist outlined the steps it is taking to “strengthen its financial foundation and position the business for long-term success while continuing to serve its customers” in a June 16 release. It was issued the same day that the Top 100 retailer filed for Chapter 11 protection in the U.S. Bankruptcy Court for the District of Delaware.
The Restructuring Support Agreement includes agreements with lenders holding more than 95% of the company’s debt, will eliminate substantially all of its nearly $2 billion in funded debt and will provide a capital infusion of $200 million to support the company through the restructuring process and beyond.
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Following the consummation of restructuring, At Home Group expects there will be a transition of ownership to the lenders supporting the RSA and providing it with new capital. Currently, At Home Group is owned by private equity group Hellman & Friedman, which acquired it in 2021.
“We are pleased to have reached this agreement with our lenders, which represents a critical and positive advancement of our work to best position At Home for the future,” said Brad Weston, CEO of At Home. “Over the past several months, we’ve taken deliberate steps to strengthen the foundation of our business: sharpening our focus, elevating our customer value proposition and driving operational discipline. These efforts are aimed at delivering sustained sales growth, optimizing our inventory management, improving efficiency and enhancing overall profitability.
“While we have made significant progress advancing our initiatives to date, we are operating against the backdrop of an increasingly dynamic and rapidly evolving trade environment as we navigate the impact of tariffs,” he continued. “The steps we are taking today to fully de-lever our balance sheet will improve our ability to compete in the marketplace in the face of continued volatility and increase the resilience of our business for the long term.”
“We are grateful to be moving forward with significant support from our financial stakeholders, which demonstrates their confidence in our business and our future strategy,” Weston added. “Upon emergence from the prearranged restructuring process, At Home will move forward with new owners and a meaningfully strengthened balance sheet. Importantly, this process will also further equip us with opportunities to invest in our strategic initiatives and to continue fortifying our business for the long term. As we work through this process, our stores and the teams that support them remain customer focused and committed to serving and inspiring customers, enabling them to Design Their Life At Home.”
In a letter to vendors, At Home noted that it fully expects to pay its vendors and suppliers in full under normal terms for goods and services provided on or after the filing date; that it fully expects to have the financial resources to execute its business strategy; and it is operating in the normal course and expects to continue serving customers in store and online.
Additionally, the website, AtHomeRestructuring.com, was launched to provide updates on the process.