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At Home Group Inc., a home-decor retailer owned by Hellman & Friedman, is preparing to file for Chapter 11 bankruptcy in the coming weeks. The company is exploring this option to address its liquidity issues, according to sources familiar with the situation. At Home has been experiencing a cash crunch, exacerbated by ongoing U.S. tariffs and trade tensions.
The financial strain intensified when At Home missed an interest payment on May 15. Subsequently, the company entered a forbearance agreement with its lenders on May 23, as reported by Bloomberg Law. This agreement provides temporary relief while the company attempts to restructure its debts.
The Chapter 11 filing would allow At Home to reorganize its debts while continuing operations. This move comes amid a challenging retail environment, where many companies are grappling with similar financial difficulties due to economic uncertainties and changing consumer behaviors.
The situation remains fluid, and At Home is considering various strategies to stabilize its financial position. The company has not yet publicly commented on the bankruptcy plans. As the situation develops, more details are expected to emerge regarding At Home's restructuring efforts and potential impacts on its operations and stakeholders.