At Home, a well-known home decor and furniture retailer with over 200 locations across the U.S., has made the decision to file for bankruptcy. The company announced on Monday that it will be seeking Chapter 11 protection as part of a restructuring plan aimed at eliminating $2 billion in debt and securing $200 million in capital to assist with the restructuring process.

Owned by Hellman & Friedman and based in Plano, Texas, At Home has been facing challenges for several months due to increasing tariffs. After missing an interest payment on May 15, the company entered into a forbearance agreement with its lenders. As per the terms of the agreement, At Home anticipates transferring ownership of the company to a group of lenders who hold more than 95% of its debt.

Brad Weston, the CEO of At Home, acknowledged the complexities of the current trade environment, stating that the company's actions are aimed at enhancing its competitiveness in the market amidst ongoing volatility. He emphasized that these steps will bolster the business's resilience in the long run.

Originally known as Garden Ridge Pottery, At Home inaugurated its first store in 1979 in Schertz, Texas. Over the years, it has grown to operate 260 stores in 40 states, offering a wide range of home goods such as rugs, furniture, bedding, and kitchenware. While it remains uncertain whether the restructuring will result in store closures, At Home has assured customers that the majority of its stores will remain operational, catering to both in-store and online shoppers.

Neil Saunders, the managing director of GlobalData, pointed out that apart from debt, At Home is grappling with a decline in consumer demand for home furnishings, influenced by low consumer confidence and a sluggish housing market. He noted that these challenges are likely to persist in the near future.

The voluntary Chapter 11 proceedings are being conducted at the U.S. Bankruptcy Court for the District of Delaware. At Home's decision to file for Chapter 11 comes amidst a wave of financial instability affecting other major retailers, with The Container Store and Big Lots having filed for bankruptcy last year.