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Retail sellers have been in an inconsistent
territory lately,
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as buying trends and consumer sentiment shifts
reflect an uncertain economy.
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Retail Insight Network recently suggested that
in the coming months,
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retailers will watch closely as the effects of
tariffs, inflation,
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and interest rates continue to shape purchasing
patterns.
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And for one major purveyor of home goods, it
seems all of these issues have been problematic,
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so much so.
That it’s filing for bankruptcy.
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At Home is a retailer that was first
established way back in 1979 and has grown
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significantly since.
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The brand was acquired a few years back by a
private equity firm for $2.8 billion and
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operates more than 260 stores with 7,000+
employees.
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So why is at home filing Chapter 11?
The company says that after gaining a boost
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from pandemic spending, it was saddled with
Heavy freight costs and supply chain
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disruptions as demand started to wane due to
inflation, the business accumulated some $2
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billion in debt.
Company leaders say today’s consumer spends
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less than they did a few years back due to
reduced confidence and economic uncertainty.
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The other issue said at home is tariffs.
The company sources 90% of its goods from
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overseas, according to Retail Dive, and this
volatility of the.
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Current environment added significant pressure
at a time when At Home was trying to solve its
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other problems.
So instead, the problems will be addressed
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through the bankruptcy proceedings.
According to reports,
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it’s $2 billion in debt will be wiped out based
on agreements that have been reached with many
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lenders.
The Home Decor and furniture seller will also
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close 26 stores.
Brad Weston, CEO of At Home,
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said the company’s recent efforts will improve
its ability to Compete in the marketplace in
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the face of continued volatility and increase
the resilience of the business for the long
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term.
That said, some experts are less optimistic
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about the path forward for at home.
CBS News quoted Neil Saunders,
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managing director of Global Data, who said that
even if the retailer is able to tackle its debt,
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the dynamics that are contributing to the
purchasing slowdown are unlikely to change in
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the near term.
I’m Anna Wells.
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This is manufacturing now.