new York
Cnn
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At Home, a People’s Home Products with 260 stores in 40 US states, has filed for bankruptcy, citing The price canvas of the prices increases and a slowdown in consumption expenditure.
The company based in Dallas announced on Monday that it had concluded an agreement with its lenders who “would eliminate almost all” of its debt of around $ 2 billion and provide 200 million dollars in fresh funding to keep at home, while he is sailing in the chapter 11 process.
Brad Weston, CEO of Home, who joined the company last year, said in a press release that the company “operated in the context of an increasingly dynamic and rapid trade environment when we sail on the impact of prices” and that changes “will improve our ability to compete” in the face of continuous volatility and increase the resilience of our business in the long term “.
Companies in the United States are struggling with uncertainty on prices, including on the countries from which at home, extend its products, Especially China. At one point, the American prices on this country reached 145% before an agreement last month To temporarily reduce this to 30%.
A decline in discretionary expenses in the United States in recent years has also expressed problems for the home goods industry, with The container store,, Bed bathtub and beyond And Lots all the bankruptcy.
However, the main problem for home is its “extended debt that the company had in its balance sheet,” according to Neil Saunders, Managing Director of Globaldata. “It was not sustainable and its elimination under Chapter 11 will provide a more stable base on which the company can operate.”
He added that the proposal of the house is “weak” and is “not sufficiently differentiated to compete with rivals like Ikea, Wayfair and others”.
“There is too little inspiration and not enough excitement to attract people in stores, especially in the fields where competition is high,” Saunders wrote in a note.
At Home, which sells a wide variety of items such as furniture, carpets and other home accessories, said it would continue to operate as usual, including executive orders, payment of sellers and maintaining its loyalty program during the Chapter 11 process.
However, the private company has suggested that it could close certain locations, saying that “majority of our stores will remain open”. THE Wall Street Journal recently reported that around 20 home locations should close.
At the end of Chapter 11, at home “goes ahead with new owners and a significantly reinforced assessment,” said Weston.