At Home, the home goods and décor retailer, has received crucial approval from the U.S. Bankruptcy Court for the District of Delaware for its restructuring plan.
This significant development aims to eliminate nearly all of the company's $2 billion in funded debt and facilitate its sale to a group of its lenders. The retailer will also gain access to approximately $500 million in asset-based loans.
Restructuring Plan Approved
The approval marks a significant milestone for At Home, which initiated its Chapter 11 bankruptcy filing in June 2025. The approved plan is designed to position the company for future success by creating a de-leveraged balance sheet and a more profitable operating model.
"Having received this approval, we are one step closer to emerging from our court-supervised process with a fully de-leveraged balance sheet, a more profitable operating model and new financial resources to invest in our strategic initiatives," CEO Brad Weston said.
Sale to Lenders and New Financing
Following the restructuring, At Home is set to be acquired by a consortium of its lenders. Key financial backers include funds affiliated with Redwood Capital Management, Farallon Capital Management, and Anchorage Capital Advisors.
These lenders collectively hold over 95% of At Home's debt and are providing the new capital. In addition to the sale, the company will secure approximately $500 million in asset-based loan financing to support its ongoing operations and strategic investments.
Continued Operations and Future Outlook
Despite the bankruptcy proceedings, At Home has maintained continuous operations across its e-commerce platform and its 232 stores located in 39 states. The company is actively preparing for the upcoming Halloween and fall seasonal transitions, as well as the crucial holiday shopping season.
"We are gearing up for the upcoming holiday season and look forward to continuing to welcome and serve customers in our stores and online," Weston said.
The restructuring and subsequent sale are expected to equip At Home with the necessary financial strength to invest in its strategic initiatives and fortify its business for the long term.
