Updated Oct. 3 to reflect new At Home statement that it will close 31 instead of 40 stores.
Home goods retailer At Home plans to cut nearly $2 billion of debt in bankruptcy court, allowing it to exit Chapter 11 proceedings under new ownership and with fewer stores.
The retailer, based in the Dallas area, expects to emerge from bankruptcy in the coming weeks after a Delaware bankruptcy judge approved its restructuring plan. At Home expects to close 31 stores in its real estate portfolio, the company said.
Along with eliminating nearly $2 billion of debt, At Home is expected to have access to roughly $500 million under an asset-based loan to continue its operations.
Upon the completion of the restructuring, At Home's ownership is expected to transition to a group of its lenders, including funds affiliated with Redwood Capital Management, Farallon Capital Management and Anchorage Capital Advisors.
"Having received this approval, we are one step closer to emerging from our court-supervised process with a fully de-levered balance sheet, a more profitable operating model and new financial resources to invest in our strategic initiatives," At Home CEO Brad Weston said in a statement.
"We look forward to entering our next phase as a more resilient, more competitive business," Weston said, adding that this will be done with the help of its team members and an optimized store fleet.
The bankruptcy process allowed At Home to work through its leased real estate, with stores being added and taken off the closure list in recent months. Prior to its bankruptcy filing, At Home operated 260 stores in 40 U.S. states.
In addition to the 31 stores At Home plans to close, the company said six "non-operational" stores in California, Minnesota, Oregon and Washington state will also close. The 31 stores being closed include the following:
California: 1982 E. 20th St. in Chico; 2200 Harbor Blvd. in Costa Mesa; 26532 Towne Center Drive in Foothill Ranch; 2900 N. Bellflower Blvd. in Long Beach; 3795 E. Foothills Blvd. in Pasadena; 8320 Delta Shores Circle S in Sacramento; 750 Newhall Drive in San Jose; and 2505 El Camino Real in Tustin.
Florida: 14585 Biscayne Blvd. in North Miami.
Illinois: 13180 S. Cicero Ave. in Crestwood; 5203 W. War Memorial Drive in Peoria; 101 Randall Road in Lake in the Hills; and 2100 S. Randall Road in Geneva.
Indiana: 3175 W. Third St. in Bloomington.
Iowa: 3271 Marketplace Drive in Council Bluffs.
Massachusetts: 571 Boston Turnpike in Shrewsbury.
Michigan: 3100 Washtenaw Ave. in Ypsilanti.
Minnesota: 2820 Highway 63 S in Rochester.
Montana: 905 S. 24th St. W in Billings.
New Jersey: 461 Route 10 E in Ledgewood; 1361 NJ-35 in Middletown Township; 2341 NJ-66 in Ocean Township.
New York: 300 Baychester Ave. in Bronx; 6135 Junction Blvd. in Rego Park; 5101 Fashion Drive in Nanuet.
Pennsylvania: 720 Clairton Blvd. in Pittsburgh.
Utah: 190 S. 500 W in Bountiful.
Virginia: 8300 Sudley Road in Manassas.
Washington: 1001 E. Sunset Drive in Bellingham; 2530 Rudkin Road in Yakima.
Wisconsin: 2201 Zeier Road in Madison.
For the record
Kirkland & Ellis is legal counsel for At Home. PJT Partners is the retailer's investment banker. AlixPartners is the financial adviser, and Hilco Real Estate is serving as real estate consultant. The ad hoc group of lenders was represented by Dechert LLP as legal counsel and Evercore Group LLC as the financial adviser.