Home Decor Retailer Expected To File For Bankruptcy: Report

UNITED STATES — A home decor retailer is preparing to file for Chapter 11 bankruptcy in the coming weeks to help reorganize its company to conserve cash, Bloomberg reported.

At Home Group Inc. has been navigating financial turmoil that has been complicated by the nation's tariffs and ongoing trade war, according to an anonymous source contacted by Bloomberg.

The retailer has about 266 stores in 40 states across the nation, according to data company Scrape Hero.

The decor chain, owned by Hellman & Friedman, did not make its interest payment on May 15 and has entered a forbearance pact with lenders that began on May 23, another anonymous source told Bloomberg. That reprieve will only last through June 30, the source noted.

A company spokesperson says they believe the forbearance "agreements provide us flexibility as we continue to take steps to position At Home for near and long-term success."

In recent years, the company has made efforts to steer away from China as tariff-related concerns arose late last year, Bloomberg previously reported.

Read more from Bloomberg: At Home Prepares to File for Bankruptcy in Coming Weeks

The news comes as other retailers move forward in their bankruptcy proceedings, such as JCPenny, a legacy retail company with U.S. roots far deeper than At Home.

Since JCPenney filed for Chapter 11 bankruptcy protection in 2020, more than 200 store locations have closed.

The American company, which began as the Golden Rule, was founded by James Cash Penney in Kemmerer, Wyoming, in 1902. Penney later incorporated his stores as the J.C. Penney Stores Company in 1907, which had already opened 34 stores at that point, according to Britannica Money.

Meanwhile, another legacy U.S. company, Rite Aid, is navigating its Chapter 11 proceedings.

Rite Aid filed for bankruptcy on May 4 for the second time in less than two years after the previous restructuring lessened the pharmacy chain's debt but still left it on unsound financial footing.

According to court records obtained by USA TODAY, the chain's owners said they expected auctions for Rite Aid locations to begin this month. All Rite Aid stores will eventually close or be sold to a new owner.

During this process, which could take months, customers will still be able to fill prescriptions, get immunizations and shop in the stores or online. Starting next month, however, Rite Aid has said that it will stop issuing customer rewards points for purchases. It also will no longer honor gift cards or accept returns or exchanges.

The company, which once had a massive footprint across the U.S., now runs 1,245 stores in 15 states, according to its website. It has a heavy presence in New York, Pennsylvania and California, which alone has 347 locations.

And then, CVS will shutter 271 of its pharmacy locations this year as part of a sweeping restructuring plan, the company confirmed to Patch.

The closures mark the latest in a wave of pharmacy shutdowns sweeping the nation amid shifting consumer habits and mounting industry pressures.

Read more about it here.