While Donald Trump has announced tariffs that will be placed against most countries, they have yet to take effect. Some companies, though, will not be able to wait out American negotiations with other countries as they struggle to survive.
At Home Stores Was First Founded in 1979
When Eric White founded it in Dallas, Texas, in 1979, the store was then called Garden Ridge Pottery and World Imports. After a successful start, he opened stores in neighboring cities like San Antonio, Oklahoma City, Louisville, Memphis, Houston, and Tulsa.
Imports Were Important to Garden Ridge’s/At Home’s Business
As it was in the company’s full name, importing products was important to the store’s business. At Home would import products from several different countries, though one of their chief suppliers is China. This part would loom large in the company’s financial future.
Growth Continued for the Store Throughout the 2000s
After starting in the Texas area, At Home grew outward, and at its peak, could count 250 stores around the country and had at least one location in 40 different states. That store count will soon be lower, however, as the company is filing for bankruptcy.
The Store Announced Late June That They Would be Declaring for Bankruptcy
On June 23rd, At Home announced that it would be filing for bankruptcy. In addition to filing for Chapter 11, the company announced that it would be closing 20 of its 250 stores around the country, concentrating on those that were underperforming.
Donald Trump’s Tariffs Are a Big Reason For the Troubles
Just a few years ago, At Home was continuing to see rapid expansion across the United States. Troubles started during the COVID-19 pandemic, and now, Trump’s tariffs will have an extreme impact on At Home and how they do business.
The Agreement Will Help Clear Massive Debt From At Home’s Ledger
At Home’s rapid expansion into the West Coast and Northeast created tremendous debt for the company, and they had few options as to how to get out of it. By filing for Chapter 11, At Home will clear $2 billion of debt.
A Large Number of Stores Will Close in the Restructuring
That fast expansion for At Home will now be going in reverse. As part of the restructuring, 26 of the lowest-performing stores will be closing. This represents approximately 1/10th of the chain’s locations.
Many of the Proposed Closings Were Stores That Recently Opened
At Home will be closing many stores that were opened within the last 10 years. Included on the list are two stores in New York City, three stores in New Jersey, eight stores in California, two in Massachusetts and two in Illinois.
Things Were Going Downhill Before Chapter 11
It wasn’t hard to see signs that At Home was struggling even before they announced that it would be filing for bankruptcy protection. Over the last year, the brand had shuttered 6 stores around the country.
The CEO Cited the Volatile Market
While discussing the reasons why the company had filed, the CEO pointed to both inflation and the unanswered questions about tariffs and how the company will have to deal with overall volatility.
Economists Also Blamed Another Factor for At Home’s Troubles
While inflation and a tariff war environment were factors in the retailers’ business struggles, they weren’t the only ones. Economists say that the home furnishings industry is hurting across the board due to a sluggish housing market, and they don’t expect that to turn around anytime soon.
Similar Retailers Have Also Been Struggling
The home industry is hurting as a whole, as At Home isn’t the only retailer to declare bankruptcy over the last year. The Container Store filed in December 2024, and Big Lots filed for Chapter 11 protection in September 2024.
At Home Relies Heavily on Imported Products
The fact that At Home had to declare bankruptcy before the tariffs even officially went into effect shows just how much the brand relies on imports from China. The store had also noted factors such as the cost of brick-and-mortar stores and pressures from inflation.
This Is the Second Time The Company Has Declared Bankruptcy
The Garden Ridge chain of stores first declared bankruptcy in February of 2004. This action caused them to close one distribution center along with nine stores. In addition, the leases of 30 more stores were renegotiated.
The Reasons For the 2004 Bankruptcy Were Different
Garden Ridge filed for Chapter 11 protection in 2004 after experiencing rapid growth. The reason for their troubles was increased pressure from large chains like Target and Walmart. The company changed their strategies to focus more on interior decorating products.
Garden Ridge Became At Home in 2014
The store was able to come out of the first bankruptcy successfully, and the change in focus helped the company continue to grow. In 2014, Garden Ridge chose to rebrand the company, changing its name to At Home and incorporating a new logo.
Growth Continued, But Soon Hit a Roadblock
The rebranding for At Home was a major success, and the store continued its expansion into new states and markets. The company was nearly sold to Kohl’s, but the deal fell through and the stock value of At Home dipped.
The Pandemic Boosted Business…At First
When the COVID-19 pandemic first hit the United States, people isolated in their homes began to think about making improvements in their houses. So the first part of the pandemic went well. Sales rose by more than 25% for the company between 2020 and 2021.
Conclusion
It has been hard for any business, let alone one that specializes in imports, to survive over the last decade. At Home, with so many of its products coming from overseas, may have to find new methods to source products. The company has successfully come out of bankruptcy before and hopes to do it again.