Bankrupt Home Decor Retailer To Close MN Store

MINNESOTA — A popular chain retailer that specializes in furniture and home decor has filed for Chapter 11 bankruptcy protection and is preparing to close more than two dozen stores across the U.S.

One of the stores that will close is located in Minnesota. The decor retailer, At Home, plans to reorganize its company to conserve cash.

At Home Group Inc. has been navigating financial turmoil that has been complicated by the nation's tariffs and ongoing trade war, according to court documents filed on Monday. The company also attributed the upcoming closures to "broader economic and retail-specific market pressures."

From the west to east coasts, the retailer plans to close 26 of its 266 stores, which operate in 40 states, according to news reports and data company, Scrape Hero.

"Given the expenses associated with brick-and-mortar operation and the issues affecting the retail industry, a number of the remaining stores are operating at sub-optimal performance levels," according to court documents.

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

As part of the bankruptcy proceedings, At Home will be transferred to new ownership under a group of hedge funds and investment firms based in New York City and San Francisco, the company said in a news release.

"... we are operating against the backdrop of an increasingly dynamic and rapidly evolving trade environment as we navigate the impact of tariffs," said Brad Weston, CEO of At Home.

"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," he continued.

In Minnesota, the Rochester store at 2820 Highway 63 South is slated to close by Sept. 30, court documents show.

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.

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