With tariffs at an all-time high, shoppers are being forced to reevaluate their spending habits. Meanwhile, many businesses—both mom-and-pop shops and big-box chains alike—are gearing up for what could be a very quiet summer shopping season. Retailers are putting up a strong fight, but not all will be able to protect themselves from President Trump’s imposed tariffs. According to a new report in the Wall Street Journal, At Home Group is the latest chain to circle the bankruptcy drain. The home-furnishings superstore, which is headquartered in Texas, operates 266 locations in 40 states.
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As its name suggests, At Home sells home decor, housewares, furniture, rugs, wall art, holiday/seasonal decor, and outdoor furniture. Warehouses are typically 100,000 square feet (or about the size of two football fields) and hold about 50,000 products. The chain also works with a private label sector and celebrity-owned brands, including HGTV’s Ty Pennington. In other words: If you have an empty house to furnish, At Home is the place to shop.
At Home procures most of its merchandise from other countries, most notably China, whose imported goods were recently hit with a 145 percent tariff under the guise of the Trump administration. Like its peers, At Home is also facing 25 percent tariffs on some Canadian and Mexican products, on top of the president’s newly imposed 10 percent universal tariff.
The tariff mandates are still in motion and could continue to rise. But despite their "explosive" repercussions, Trump has since doubled down on his actions. At a recent Republican dinner party, he told his cohorts that "it’s our turn to do the ripping" after other countries have "ripped us off left and right," per the BBC.
At Home isn’t the only retailer feeling the heat. Businesses across the nation are reeling from the hiked tariffs. Speaking with The New York Times, store owner Joanne Kwong said, "My business cannot survive" unless the tariffs come down.
"You feel a little bit like the sacrificial lamb," Kwong remarked.
Her NYC-based houseware store, Pearl River Mart, sources 65 percent of its inventory from China. She also noted that customer purchases are usually deemed discretionary, meaning her business will be among the first to suffer at the hands of hyperinflation.
"One hundred percent of our goods are nice-to-have goods, not need-to-have goods," said Kwong. "You’re going to need to pay the rent and feed the kids before shopping with us."
BMO Capital Markets senior analyst Simeon Siegel shared that sentiment. "Raising prices is hard enough in a good environment," let alone one plagued with inflation, impeding tariffs, and tight purse strings, he told the NYT.
"Where do people close their wallets first? Fixing a house can become a very discretionary purchase," he reasoned.
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As for the future of At Home Group, a bankruptcy filing could be in order if the company fails to resolve its debt obligations. At Home is in talks with investment bank PJT Partners and operational adviser AlixParters LLP to reach a solution, reports Bloomberg Law.
It’s unclear if or when At Home store locations may begin to shutter. The retailer has yet to publicly address the bankruptcy rumors.
