Is one of your favorite home stores quietly slipping away? 200 locations are now at risk
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It wasn’t long ago that shoppers were filling carts with discounted rugs and quirky garden gnomes from one massive retailer.
But behind the scenes, something has been unraveling.
A quiet storm of financial strain, political policy, and changing shopping trends is threatening to pull the plug.
And this might be the beginning of the end for a home decor destination that once felt too big to fail.
A well-known home furnishings chain with more than 200 locations across 40 states is reportedly on the verge of filing for Chapter 11 bankruptcy.
The company—once considered a more local, warehouse-style cousin to global retailers—is now facing a future clouded with uncertainty.
It’s not just debt dragging it down.
From lingering inflation to foreign tariffs that drive up costs, the threats are coming from every direction.
The retailer sources a large portion of its inventory from overseas.
When tariffs on Chinese imports surged to 30% during the previous administration, businesses like this one were left reeling.
Faced with two options—either absorb the spike or pass it on—this home chain appears to have taken on both pain points.
Debt piled up, customers drifted toward cheaper competitors, and the value promise began to fade.
Retail experts haven’t minced words.
Neil Saunders, a managing director at GlobalData, said the company has “way too much debt,” and that its stores are “not particularly interesting.”
Competitors are outpacing it with more engaging products and lower price tags, leaving this retailer to fight an uphill battle.
The numbers speak for themselves. The chain is reportedly sitting on more than $2 billion in debt.
It even missed a critical interest payment on May 15 and now has until the end of June to chart its next move—likely involving bankruptcy.
Also read: Fast food shakeup: A popular sandwich chain faces bankruptcy
Behind the scenes, executives have been working to shift the brand’s supply chain from China to India.
That pivot began in late 2023, but reworking a global sourcing strategy takes time—and there are hurdles there, too.
India is still negotiating with US officials to lift a paused 26% tariff, which could impact the cost-effectiveness of that shift.
Without resolution, the company remains stuck between rising expenses and shrinking profit margins.
The home decor sector as a whole has cooled.
During lockdowns, home stores saw a surge as Americans upgraded their spaces.
But post-pandemic, the spending spree has slowed.
Tim Hynes, Debtwire’s global head of credit research, explained the shift:
“Although inflation has been easing, overall prices are still significantly higher than pre-pandemic levels.”
He added, “There is a notable shift away from discretionary goods, such as home furnishings, towards essential items and experiences.”
For retailers leaning heavily on low- to mid-tier decor, that shift has been brutal.
Where shoppers once splurged on accent chairs and framed wall prints, they’re now choosing groceries, gas, and travel.
And the pattern isn’t unique—others in the industry have struggled, too.
LL Flooring (formerly Lumber Liquidators) and The Container Store have both come out of bankruptcy.
Others haven’t been so lucky.
Also read: More IKEA stores are coming—here’s where and what to expect
Closures, restructurings, and sell-offs are becoming the norm, and this chain may be the next to make some tough decisions.
But long-term? If tariffs stick and sourcing remains expensive, prices across the sector could climb.
And the deep discounts customers have grown used to might fade, not just at this store, but across all budget-focused retailers.
Global political tensions aren’t helping. While some supply chain issues have stabilized since the pandemic, tariff risks remain.
Hynes warns that “geopolitical risks and the potential for increased tariffs on imported goods introduce uncertainty.”
Retailers that depend on international products, he adds, “could face higher procurement costs and potential disruptions.”
The retailer’s private equity backer acquired it in 2021 for $2.8 billion.
But that injection of capital now feels distant as the company fights to survive another month.
As of now, neither the company nor its ownership group have offered comments on what’s next.
Read next: This secret home retailer is blowing Lowe's out of the water—and it’s opening 13 new stores!
Have you spotted changes at your local home decor retailer? Have prices already started creeping up—or have you found new favorites elsewhere? We’d love to hear your thoughts in the comments.
But behind the scenes, something has been unraveling.
A quiet storm of financial strain, political policy, and changing shopping trends is threatening to pull the plug.
And this might be the beginning of the end for a home decor destination that once felt too big to fail.
A well-known home furnishings chain with more than 200 locations across 40 states is reportedly on the verge of filing for Chapter 11 bankruptcy.
The company—once considered a more local, warehouse-style cousin to global retailers—is now facing a future clouded with uncertainty.
It’s not just debt dragging it down.
From lingering inflation to foreign tariffs that drive up costs, the threats are coming from every direction.
The retailer sources a large portion of its inventory from overseas.
When tariffs on Chinese imports surged to 30% during the previous administration, businesses like this one were left reeling.
Faced with two options—either absorb the spike or pass it on—this home chain appears to have taken on both pain points.
Debt piled up, customers drifted toward cheaper competitors, and the value promise began to fade.
Retail experts haven’t minced words.
Neil Saunders, a managing director at GlobalData, said the company has “way too much debt,” and that its stores are “not particularly interesting.”
Competitors are outpacing it with more engaging products and lower price tags, leaving this retailer to fight an uphill battle.
The numbers speak for themselves. The chain is reportedly sitting on more than $2 billion in debt.
It even missed a critical interest payment on May 15 and now has until the end of June to chart its next move—likely involving bankruptcy.
Also read: Fast food shakeup: A popular sandwich chain faces bankruptcy
Behind the scenes, executives have been working to shift the brand’s supply chain from China to India.
That pivot began in late 2023, but reworking a global sourcing strategy takes time—and there are hurdles there, too.
India is still negotiating with US officials to lift a paused 26% tariff, which could impact the cost-effectiveness of that shift.
Without resolution, the company remains stuck between rising expenses and shrinking profit margins.
The home decor sector as a whole has cooled.
During lockdowns, home stores saw a surge as Americans upgraded their spaces.
But post-pandemic, the spending spree has slowed.
Tim Hynes, Debtwire’s global head of credit research, explained the shift:
“Although inflation has been easing, overall prices are still significantly higher than pre-pandemic levels.”
He added, “There is a notable shift away from discretionary goods, such as home furnishings, towards essential items and experiences.”
For retailers leaning heavily on low- to mid-tier decor, that shift has been brutal.
Where shoppers once splurged on accent chairs and framed wall prints, they’re now choosing groceries, gas, and travel.
And the pattern isn’t unique—others in the industry have struggled, too.
LL Flooring (formerly Lumber Liquidators) and The Container Store have both come out of bankruptcy.
Others haven’t been so lucky.
Also read: More IKEA stores are coming—here’s where and what to expect
Closures, restructurings, and sell-offs are becoming the norm, and this chain may be the next to make some tough decisions.
But long-term? If tariffs stick and sourcing remains expensive, prices across the sector could climb.
And the deep discounts customers have grown used to might fade, not just at this store, but across all budget-focused retailers.
Global political tensions aren’t helping. While some supply chain issues have stabilized since the pandemic, tariff risks remain.
Hynes warns that “geopolitical risks and the potential for increased tariffs on imported goods introduce uncertainty.”
Retailers that depend on international products, he adds, “could face higher procurement costs and potential disruptions.”
The retailer’s private equity backer acquired it in 2021 for $2.8 billion.
But that injection of capital now feels distant as the company fights to survive another month.
As of now, neither the company nor its ownership group have offered comments on what’s next.
Read next: This secret home retailer is blowing Lowe's out of the water—and it’s opening 13 new stores!
