Written by: RBA Insights — Posted on: August 4, 2025

On June 16, 2025, At Home Group Inc., the national home décor and furnishings chain, filed for Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware. The company said this court-supervised process is intended to help eliminate nearly $2 billion of debt. It's supported by a $200 million new-money investment and a $600 million loan to fund operations during the restructuring. Stores and e-commerce are staying open during the process.

At the time of the filing, At Home planned to close 26 of its roughly 260 stores by the end of September. As of this week, six more closures have been announced in Iowa, Illinois, Indiana, Michigan, New Jersey, and Utah. That brings the total to 32 stores that will shut down in the coming weeks. These locations have already started closing sales with discounts up to 30 percent. All purchases made after August 1 are final, and returns are only being accepted for a short period on earlier transactions.

Industry reports confirm that a national liquidation firm is managing these closing sales, and operations at the rest of At Home’s stores are continuing during the transition.

The company pointed to several reasons for the closures. These include higher import tariffs on furniture and home goods, weaker consumer spending on discretionary items, and the high cost of running large store locations. The filing is also tied to a broader plan to restructure the company’s finances and possibly transfer ownership to its lenders.

What This Means for Independent Retailers

Store closures like these create local gaps in the market. If your store is located near one of the closing At Home locations, there’s now an opportunity to attract new customers who will be looking for a reliable alternative.

Many shoppers who show up for liquidation deals will walk away feeling underwhelmed. Inventory is limited, special orders aren’t available, and customer service tends to be minimal. This creates a perfect moment for local stores to stand out by offering a better experience, faster delivery, and real support after the sale.

This is also a good time to be strategic. Don’t get pulled into a price war. Instead, highlight what makes your store different. Focus on curated collections, knowledgeable staff, strong delivery service, and a showroom that helps customers visualize their space. That’s something most national chains can’t replicate.

On the digital side, consumers are increasingly frustrated when online listings don’t match in-store availability. If your website shows real-time inventory and includes helpful tools like 3D planners or live chat, you’re already ahead of the game.

What You Can Do Next

Here are a few action steps for the next 30 to 45 days:

1. Use geo-targeted ads to reach people in neighborhoods near the closing stores. Focus your message on fast delivery, available inventory, and great service.
2. Create or update a “Why Shop Local” page on your website. Clearly explain the differences between your store and a liquidation environment. Use your customer reviews and testimonials to support your message.
3. Refresh your front showroom. Make sure customers see styled room displays that show how pieces work together, not just a lineup of furniture.
4. If you run a promotion, tie it to value-added services like white-glove delivery or design help. Don’t try to compete with clearance prices.
5. Make sure your operations team is ready. New customers won during this time will expect fast responses, smooth delivery, and excellent follow-up.

At Home’s bankruptcy is a reminder that size alone doesn’t guarantee staying power. This is a moment of change in the industry, and local retailers who combine strong service with smart marketing are in a great position to grow.