At Home Group filed Chapter 11 bankruptcy on June 16, 2025, announcing plans to close 30 stores nationwide by September 30. California faces the heaviest impact with eight closures, the highest of any state.
These closures threaten hundreds of jobs across communities from Chico to Long Beach as financial challenges mount. Rising tariffs and $2 billion in debt compelled the home décor chain to restructure.
From Success to Bankruptcy Court
At Home originated as Garden Ridge Pottery in 1979 and rebranded in 2014. It was acquired by private equity firm Hellman & Friedman for $2.8 billion in 2021.
The leveraged buyout left At Home with crushing debt, contributing to its decline. The company currently operates 260 stores across 40 states, serving approximately 70 million customers annually.
Perfect Storm of Pressures
Rising interest rates and persistent inflation have created overwhelming financial strains. Consumer spending is now focused on essentials, reducing demand for discretionary home décor items.
As At Home sources around 90% of its products overseas, it is particularly vulnerable to trade uncertainties. Additionally, the company faces “going concern” audit opinions due to tightening liquidity.
Closure Strategy Announced
At Home first planned to close 26 underperforming stores; however, this number grew to 30 after adjusting strategies. The company initially rescinded two planned closures, then added six more in August.
All closures are set to finish by September 30, as part of the bankruptcy restructuring. Management’s goal is to eliminate losses while preserving more profitable locations across the country.
California Leads in Closures
Eight stores in California are shutting their doors, marking the highest concentration of closures nationwide. Locations extend from Chico in the north to Long Beach in the south.
Each store spans approximately 105,000 square feet, employing dozens of workers across diverse communities. The closures reflect the challenges of high operational costs and fierce retail competition in California.
Communities Affected Statewide
Northern California will see closures in Chico, Sacramento, and San Jose, while coastal areas lose Costa Mesa. Southern California closures include Tustin, Pasadena, Foothill Ranch, and Long Beach.
These varied markets cater to distinct demographics, from college towns to affluent suburbs. The large retail spaces will soon require new tenants, further affecting local economies.
Bankruptcy Mechanics Explained
The Delaware bankruptcy court approved $600 million in debtor-in-possession financing on July 18. Once the restructuring is complete, lenders holding over 95% of the debt will assume ownership.
This agreement aims to eliminate the bulk of the company’s $2 billion debt burden. Notably, this marks At Home’s second bankruptcy, having previously filed in 2004.
Tariff Impact Accelerates Crisis
Tariffs on Chinese imports reached 145% under the Trump administration before being reduced to 55%. At Home’s CFO cited tariffs as a significant issue for the import-reliant retailer.
Monthly tariff revenue soared from $7 billion to $28 billion between July 2024 and 2025. This trade uncertainty exacerbated financial pressures on an already struggling company.
Liquidation Sales Begin
Closing stores are offering discounts of up to 30% on all merchandise through the liquidation specialist Hilco Consumer-Retail. Sales began in June for initial closures and will run through August.
All sales are final, and no additional coupons will be accepted at closing locations. Store fixtures and equipment are also available for liquidation purchase.
Employee and Customer Impact
At Home employs approximately 7,170 workers nationally, and hundreds will face job losses in California. Gift cards and loyalty rewards were redeemable only until August 14 at closing stores.
In-store returns for pre-sale purchases had limited acceptance periods, making transitions difficult. Customers must now seek alternatives or visit remaining At Home locations.
Community Responses Emerge
Communities are losing familiar shopping destinations for affordable home furnishings across California. College towns like Chico will miss access to décor for dorms and apartments.
Shopping centers housing At Home stores will need to find new tenants for large retail spaces. This loss of foot traffic may affect neighboring businesses and property values.
Retail Sector Challenges
Big-box home goods retailers are struggling against online competition from platforms like Wayfair and established competitors. Analysts note At Home lacked sufficient inspiration to attract shoppers.
Pandemic-driven shifts in consumer behavior prioritize essential purchases over discretionary home décor. Retailers must now redefine value propositions beyond merely pricing.
Shopping Alternatives Available
California consumers can turn to HomeGoods, World Market, or remaining Bed Bath & Beyond locations for similar products. Warehouse clubs like Costco provide seasonal décor at competitive prices.
Online retailers such as Wayfair and Amazon offer a broader selection, although missing tactile shopping experiences. Local independent stores may gain customers from reduced big-box competition.
Restructuring Strategy Assessment
At Home’s strategy focuses on closing underperforming stores while strengthening profitable locations through debt reduction. The creditor group’s debt ownership reflects confidence in the company’s long-term viability.
However, ongoing tariff uncertainties and competitive pressures remain significant challenges. The company must improve operations while maintaining its low-price strategy to survive.
National vs California Dynamics
Home goods retailers face national challenges from inflation and supply chain disruptions. California’s higher costs and regulatory complexities make large retail formats less viable.
The diversity of demographics across California creates hurdles for multi-location retailers. These factors contribute to the disproportionate number of At Home closures in the state.
Industry Expert Predictions
Experts remain cautious about home goods retail prospects, citing ongoing challenging market conditions. Continued consumer uncertainty and competition will pressure traditional retailers.
Future success depends on integrating digital and physical experiences with unique product offerings. Strategic innovation is more crucial than just focusing on cost-cutting for survival.
Customer Program Deadlines
Gift cards and rewards programs had strict deadlines, with August 14 marking the last day for acceptance. Returns for pre-sale purchases were limited until August 12 only.
Tight timelines created urgency for customers with unredeemed benefits. These limited periods reflect the liquidation reality and creditors’ recovery needs.
Strategic Trade-off Analysis
Closing underperforming stores can eliminate losses while providing important liquidation cash flow. However, this strategy sacrifices market presence and customer relationships developed over years.
The trend highlights the industry’s focus on financial survival rather than market share preservation. Remaining stores must enhance profitability to ensure longer-term viability.
Lessons for Competitors
At Home’s experience underscores how excessive debt constrains flexibility during economic challenges. Retailers reliant on imports must develop robust supply chain strategies to navigate tariff volatility.
Maintaining strong cash reserves and conservative debt levels is essential for weathering unexpected market shocks. Additionally, retailers need compelling reasons for customers to prefer physical stores over online options.
California’s Retail Evolution
Eight At Home closures signal yet another shift in California’s retail landscape toward new formats. Traditional big-box stores struggle to stay relevant amid shifting consumer preferences and economic challenges.
While job losses present immediate economic impacts, reduced competition could benefit remaining retailers. The state’s future retail environment may lean toward experiential and specialized formats that justify a physical presence.