Dive Brief:
- Over a month since At Home filed for bankruptcy, the home retailer is closing six additional stores, according to a Friday press release from Hilco Consumer-Retail. The closures span six states, including Illinois and New Jersey.
- Hilco — which is being retained to manage certain store closing sales — announced in June that 26 At Home locations would shutter.
- The closing sales include discounts up to 30% off across the stores, running until all merchandise, fixtures and store equipment at each location are sold.
Dive Insight:
The latest At Home brick-and-mortar closings add to the previously announced liquidations in June spanning 12 states. The home furniture and decor company operated about 260 stores across 40 states when it filed for bankruptcy.
For the latest closures, all sales are final on goods purchased on or after Friday. At Home gift cards, certificates, loyalty and credit card rewards will be accepted through Aug. 14 at the closing stores.
With about $2 billion in debt, At Home filed for bankruptcy in June, attributing its demise to a variety of factors, including the pandemic, supply chain disruptions and tariffs. That debt would be cleared as part of a larger agreement that features $600 million in debtor-in-possession financing — $200 million of which is dedicated to restructuring.
At Home’s additional closures come as the broader home goods category struggles.
The sector has experienced a sharp downturn from the highs it had at the onset of the COVID-19 pandemic. Sales in the sector faced months of declines, though have been on the upswing more recently.
With consumers pulling back on discretionary purchases and seeking out value, some companies are hoping to appeal to new habits in the home sector.
Discount retailer Dollar General in June launched new home products such as bedding, flatware and more. Meanwhile, Bob’s Discount Furniture and Ikea have sought store growth this year despite larger headwinds in the category, thanks in part to their longstanding focus on value.