At Home Working With PJT Partners to Seek New Financing Amid Soft Consumer Demand, Trump’s Tariffs

Reporting: Harvard Zhang At Home is seeking to raise additional capital, as soft consumer demand for home decor and President Donald Trump’s tariffs weigh on the company’s liquidity, according to sources. The retailer is working with PJT Partners as financial advisor to secure new financing, the sources said. Beset by freight costs and a slow housing market, At Home executed in May 2023 the first double-dip in the current liability management exercise era that gave the company about $200 million of new money along with some discount through a debt uptiering. At the time, the company forecast growing sales, gross margin and adjusted EBITDA. But the company’s financial performance has been underwhelming since the closing of the liability management exercise. The liquidity profile has been concerning due to cash burn, according to sources. Nevertheless, adjusted EBITDA turned positive in the third quarter of 2024 despite a sales decline. Trump’s tariff policy including a doubling of the duty on imports from China to 20% adds further uncertainty to the company’s sales performance. An Octus analysis highlights the potential for the company’s current liquidity to suffer in the face of cash burn when its annualized cash interest expense is set to increase[...]