Deagreez, Getty Images Pro: RonFullHD, Sk de sansak@design Official: this is the famous chain that's already planning massive closures in the US
Uncertainty is growing in the retail sector after the closure plans of a popular chain in the U.S. became known
A well-known home goods retail company in the United States is facing one of its most critical moments. Warning signs have gone off in the sector, and everything indicates that drastic decisions are looming. Although details have been slow to be confirmed, the latest information makes it clear.
At Home Group Inc., the popular chain of home decor based in Texas, is on the verge of bankruptcy. According to recent reports, the company is already working on a financial restructuring that could lead to massive closures in the coming months. The situation has worsened due to a lack of liquidity and the accumulated effects of external factors such as tariffs and the global slowdown in trade.
Financial problems that don't stop
With more than 250 stores across 40 states, At Home Group Inc. had managed to position itself as one of the favorites in the home sector in the United States. However, in May the company missed an interest payment, which forced it to reach a forbearance agreement with its lenders. This agreement, which extends until June 30, gives it some leeway to try to reorganize its financial situation.
Currently, the company has only $17.3 million available in its asset-backed credit line, according to Bloomberg News. This figure reflects the seriousness of the moment they are going through. In addition, the company's bonds maturing in 2028 have lost value rapidly: in January they were trading at 41.25 cents per dollar and in May they dropped to 26.5 cents.
Despite these difficulties, At Home insists that they are working with their creditors to find sustainable solutions. They seek to ensure business continuity in the short term, although they do not rule out a bankruptcy scenario as a tool to restructure and keep afloat.
New leadership for an uncertain stage
As part of its transformation plan, At Home Group Inc. has made significant changes to its management team. On June 3, Brad Weston took over as the new chief executive officer, in an attempt to strengthen management and redirect the company's course. Weston has experience in the retail sector, having previously led Party City Holdings Inc.
Weston's arrival is generating expectations among analysts, who hope that his vision will help define a clearer recovery strategy. However, the company has not yet provided concrete details about its immediate future or about how many stores could close if bankruptcy is confirmed.
Both At Home Group and the Hellman & Friedman fund, its current owner, are keeping silent in the face of speculation. However, everything indicates that significant cuts are coming. The fate of this chain is a reflection of the challenges facing major retailers in an increasingly complex economic environment.
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