‘At Home' retail chain to file for Chapter 11 bankruptcy and close stores? All we know
Popular home goods store At Home may soon be on the verge of filing for Chapter 11 bankruptcy protection given its recent activities. Although the company had a good run during the pandemic, recent hikes in trade tariffs might lead to the foreclosure of multiple stores. The chain was known for providing anything and everything related to home décor needs.
"For over 46 years, At Home has been a trusted destination for stylish, approachable design — offering everything a decorator may need to transform their space into a true reflection of who they are, how they want to live, and the memories they aim to create at home. Discover everything for every room, from Furniture, Rugs, and Décor to Bedding, Bath, Outdoor and more. Explore curated collections, incredible seasonal selections, and unique pieces that show off your signature style. Design your life At Home,' reads the official company website.
ALSO READ| Immigration raids in Los Angeles hit small business owners: 'It's worse than COVID'
Covid-19 was a particularly delightful period in terms of sales for At Home. Due to a constant consumer need to redecorate and replace old furniture, those two years accounted for some of the most profitable quarters of the company. However, recent media reports suggest that the company may not be doing so well now that the rush of purchase has subsided.
The company failed to pay a key interest payment by May 15, an indication that usually precedes filing for Chapter 11 bankruptcy. Such a move either forces the lender into foreclosing the loan or brings them to the negotiation table. Although the payment can still be made by June 30, the company's recent financial track record swings the pendulum in favor of a bankruptcy filing instead.
If the company chooses to do so, it may be coerced into shutting down 10% of its 200 stores including those apart from the original locations.
The company holds President Trump's stringent tariff policies responsible for the surge in supply prices with no suitable return in sight. Since China was one of the biggest suppliers of the company's products, the recent tariff hikes have burdened the company amidst declining consumer spending. Although they have tried to branch out to other sources to get supply at cheaper rates, it's not quite as easy to replace an entire pre-established system.
ALSO READ| Which countries have nuclear weapons, and how many does each one have? | Details here
On June 16, the company officially entered into a Restructuring Support Agreement with its lenders in order to prearrange a financial restructuring of the chain to eliminate its $2 billion debt and infuse more capital into the project.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
an hour ago
- Time of India
Wall Street choppy, oil dips as US holds back from Mideast military action
Major Wall Street indexes closed lower on Friday while oil prices fell after U.S. President Donald Trump held back from immediate military action in the Israel-Iran conflict. All eyes remained trained on the Middle East one week after an initial Israeli assault drew Iranian retaliation. The U.S. imposed Iran-related sanctions a day after Trump said he might take two weeks to decide on further action. According to preliminary data, the S&P 500 lost 0.21%, while the Nasdaq Composite shed 0.49%. The Dow Jones Industrial Average, however, rose 38.47 points, or 0.09%, to 42,210.13. Stocks had been broadly positive at the open, and dipped in and out of negative territory during the session. Global benchmark Brent crude futures fell 2.3% to settle at $77.01 a barrel, but gained 3.6% in the week. Front-month U.S. crude - which did not settle on Thursday due to a U.S. holiday and expires on Friday - ended down 0.28% at $74.93, with a weekly gain of 2.7%. Live Events "Investors are a little bit nervous about buying stocks right in front of this situation and, more specifically, right in front of this weekend," said Rick Meckler, a partner at Cherry Lane Investments in New Vernon, New Jersey. The new sanctions target entities, individuals and vessels providing Iran with defence machinery, and were seen as a sign of a diplomatic approach from the Trump administration. "However, while Israel and Iran carry on pounding away at each other, there can always be an unintended action that escalates the conflict and touches upon oil infrastructure," PVM analyst John Evans said. European foreign ministers urged Iran to engage with the U.S. over its nuclear programme after high-level talks in Geneva about a potential new nuclear deal ended with little sign of progress. Europe's main bourses had ended their session a touch higher, following similar gains across Asia. MSCI's gauge of stocks across the globe fell 0.01% on the day. Gains on Hong Kong's Hang Seng, and South Korea's Kospi linked to newly elected President Lee Jae Myung's stimulus, had boosted Asian shares during that session. FED SPLIT Federal Reserve policymakers made their first public comments since Chair Jerome Powell said on Wednesday that borrowing costs were likely to fall this year, but that he expects "meaningful" inflation ahead as Trump's tariffs raise prices for consumers. The close split between governors on how to manage the risks was in full view as Governor Christopher Waller said the central bank should consider cutting as soon as the next meeting, while the Richmond Fed's Tom Barkin said there was no urgency to cut. Powell had also cautioned on Wednesday against holding on too strongly to the forecasts. Treasury yields fell after Waller's comments, and as concerns about the Middle East conflict supported demand for safe haven bonds. The yield on benchmark 10-year notes fell 2 basis points to 4.375%, from 4.395% late on Wednesday. Demand rose for the U.S. dollar, pushing the greenback to a three-week high against the yen. The dollar rose 0.03% against a basket of currencies including the yen and the euro, with the euro up 0.3% at $1.1528. The index is poised to rise 0.6% this week. Prices for gold, another traditional refuge, fell 0.13% to $3,365.91 and were poised for a weekly loss.
Time of India
an hour ago
- Time of India
Gold poised for weekly loss as US delays decision on Middle East involvement
Synopsis Gold prices remained stable on Friday but are set for a weekly loss as President Trump delayed a decision on intervention in the Israel-Iran conflict. The U.S. central bank's steady interest rates also influenced the market, while safe-haven demand and central bank purchases are expected to support gold prices. Silver, palladium, and platinum experienced varied price movements.
Economic Times
an hour ago
- Economic Times
Oil prices settle lower as US sanctions ease fears of escalation in Iran
Oil prices settled down on Friday as the U.S. imposed new Iran-related sanctions, marking a diplomatic approach that fed hopes of a negotiated agreement, a day after President Donald Trump said he might take two weeks to decide U.S. involvement in the Israel-Iran conflict. ADVERTISEMENT Brent crude futures settled down $1.84, or 2.33%, to $77.01 a barrel. U.S. West Texas Intermediate crude for July - which did not settle on Thursday as it was a U.S. holiday and expires on Friday - was down 21 cents, or 0.28%, at $74.93. The more liquid August contract settled at $73.84. Brent rose 3.6% on the week, while front-month U.S. crude futures increased 2.7%. The Trump administration issued fresh Iran-related sanctions, including on two entities based in Hong Kong, and counter-terrorism-related sanctions, according to a notice posted to the U.S. Treasury Department website. The sanctions target at least 20 entities, five individuals and three vessels, according to Treasury's Office of Foreign Asset Control. ADVERTISEMENT "Those sanctions are cutting both ways. They may be part of a broader negotiation approach towards Iran. The fact they are undertaking this is a signal they are trying to resolve this outside of conflict," said John Kilduff, partner at Again Capital in New York. Oil prices jumped almost 3% on Thursday after Israel bombed nuclear targets in Iran, while Iran - OPEC's third-largest producer - fired missiles and drones at Israel. Neither side showed any sign of backing down in the week-old war. Brent prices retreated after the White House said Trump would decide whether the United States would get involved in the Israel-Iran conflict in the next two weeks. "Although a major escalation is yet to occur, risks to supply from the region remain high, still hinging upon the potential for U.S. involvement," said Russell Shor, senior market analyst at Israel's UN ambassador said Israel seeks genuine efforts on Iran's nuclear capabilities from Friday's meeting between European and Iranian ministers, not just another round of talks. ADVERTISEMENT "However, while Israel and Iran carry on pounding away at each other, there can always be an unintended action that escalates the conflict and touches upon oil infrastructure," PVM analyst John Evans said. Iran in the past has threatened to close the Strait of Hormuz, a vital route for Middle East oil exports. ADVERTISEMENT Oil exports so far have not been disrupted and there is no shortage of supply, said Giovanni Staunovo, an analyst at UBS. "The direction of oil prices from here will depend on whether there are supply disruptions," he said. ADVERTISEMENT An escalation of the conflict in such a way that Israel attacks export infrastructure or Iran disrupts shipping through the strait could lead to oil at $100 a barrel being a reality, said Panmure Liberum analyst Ashley Kelty. Elsewhere, the EU has abandoned its proposal to lower the price cap on Russian oil to $45, Bloomberg reported. U.S. energy firms this week cut the number of oil and natural gas rigs operating for an eighth week in a row for the first time since September 2023, energy services firm Baker Hughes said in its closely followed report. The oil and gas rig count, an early indicator of future output, fell by one to 554 in the week to June 20, the lowest since November 2021. (You can now subscribe to our ETMarkets WhatsApp channel)
