At Home files for bankruptcy
Walmart warns of price hikes due to tariffs
"Always low prices" has long been a selling point for Walmart stores across the country. However, recent tariff announcements from the Trump administration have the company admitting their prices might have to change, at least for a little while.
A popular home decor retailer has filed for bankruptcy amid the changing trade environment from President Donald Trump’s tariffs.
At Home files for bankruptcy
Big picture view:
The company announced Monday it started Chapter 11 bankruptcy proceedings so that it can implement a "restructuring support agreement."
FILE - At Home, a home decor superstore, showing store logo above the entrance doors. (Photo by: Don and Melinda Crawford/UCG/Universal Images Group via Getty Images)
By the numbers:
The deal will help the retailer wipe out "substantially all" of its nearly $2 billion in debt, At Home said. It will also infuse the retailer with $200 million of capital.
What they're saying:
The Dallas-based company said it has been working over the past several months to strengthen its finances, but is "operating against the backdrop of an increasingly dynamic and rapidly evolving trade environment as we navigate the impact of tariffs."
"The steps we are taking today 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," the company said.
What this means for shoppers
What's next:
At Home is not shutting down and the majority of stores will remain open, according to its restructuring website.
At Home will continue selling products at physical stores and through its website.
Dig deeper:
Employees and vendors should also expect operation and payment as usual.
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Trump’s tariffs
The backstory:
President Donald Trump unleashed a wide-ranging trade war, imposing steep tariffs on China, the European Union, and dozens of other countries
In April, Trump postponed a set of sweeping tariffs on about 60 nations and last month reached a temporary truce with China, after both sides had sharply ratcheted up tariffs on each other.
Why you should care:
Most economists expect tariffs to hit harder in the coming months.
Companies ranging from Walmart to Lululemon to J.M. Smucker have said they will raise prices in the coming months to offset the impact of tariffs.
RELATED: These companies expect to raise their prices due to Trump tariffs
The Source: Information in this article was taken from a website created by At Home to detail its restructuring process, athomerestructuring.com. Background information about tariffs was taken from previous FOX Television Station reporting and The Associated Press. This story was reported from Detroit.