At Home Enters Agreement to Facilitate Ownership Transition

June 16, 2025  by Karen Parrish in Business Strategy, Industry   

— Restructuring Support Agreement with Key Financial Stakeholders to Eliminate Substantially All $2 Billion of Company’s Funded Debt and Provide $200 Million in New Capital

— At Home Initiates Voluntary Court-Supervised Process to Implement Terms of Agreement

— Secures Commitment for $600 Million in Debtor-in-Possession Financing to Support Continued Operations

— Continuing to Serve Customers In-Store and Online with Compelling Home Furnishings Assortment That Pairs Good Design with Exceptional Value

At Home Group Inc. (“At Home” or the “Company”) today announced steps the Company is taking to strengthen its financial foundation and position the business for long-term success while continuing to serve its customers.

The Company has entered into a Restructuring Support Agreement (the "RSA") with lenders holding more than 95% of the Company’s debt that sets forth terms of a prearranged financial restructuring that will eliminate substantially all of the Company’s nearly $2 billion in funded debt and provide a capital infusion of $200 million to support the Company through its restructuring process and beyond. Pursuant to the RSA, following the consummation of its restructuring, the Company expects there will be a transition of ownership of At Home to the lenders supporting the RSA and providing the Company with new capital, including funds affiliated with Redwood Capital Management, LLC, Farallon Capital Management, L.L.C., and Anchorage Capital Advisors, L.P.

“We are pleased to have reached this agreement with our lenders, which represents a critical and positive advancement of our work to best position At Home for the future,” said Brad Weston, Chief Executive Officer of At Home. “Over the past several months, we’ve taken deliberate steps to strengthen the foundation of our business - sharpening our focus, elevating our customer value proposition, and driving operational discipline. These efforts are aimed at delivering sustained sales growth, optimizing our inventory management, improving efficiency, and enhancing overall profitability. While we have made significant progress advancing our initiatives to date, we are operating against the backdrop of an increasingly dynamic and rapidly evolving trade environment as we navigate the impact of tariffs. The steps we are taking today to fully de-lever our balance sheet will improve our ability to compete in the marketplace in the face of continued volatility and increase the resilience of our business for the long term.”

“We are grateful to be moving forward with significant support from our financial stakeholders, which demonstrates their confidence in our business and our future strategy,” continued Weston. “Upon emergence from the prearranged restructuring process, At Home will move forward with new owners and a meaningfully strengthened balance sheet. Importantly, this process will also further equip us with opportunities to invest in our strategic initiatives and to continue fortifying our business for the long term. As we work through this process, our stores and the teams that support them remain customer focused and committed to serving and inspiring customers, enabling them to Design Their Life AT HOME.”