Home improvement giant Home Depot (HD) is about to lose a draw to its stores at a time when it needed every possible draw to get customers to come in. Wren Kitchens is filing Chapter 7 bankruptcy, and with it, the partnership the two stores had is about to fall apart. Home Depot investors did not take the news well, as shares slid nearly 3% in Wednesday morning’s trading.
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The Wren Kitchens bankruptcy hit abruptly, and the company closed 15 stores on top of it. Reports suggest this may leave customers in the lurch who were expecting product from Wren Kitchens but may not ever receive it. Wren Kitchens did leave a link behind, though, to a form that customers needed to fill out if they needed assistance in the wake of the closure. Home Depot and Wren Kitchens have had a partnership going since 2024.
Home Depot was largely blindsided by the closures, reports note, as Home Depot noted that it had received “…no previous notice of Wren’s intent to close….” Home Depot also noted that it was “…actively evaluating how this has affected Wren customers to help those who may have questions or issues. Home Depot was not the only one blindsided, as Wren Kitchens’ United States employees are reportedly filing a class-action lawsuit alleging the firings went on in violation of the Worker Adjustment and Retraining Notification (WARN) Act.
Knowing Your Market
Home Depot also recently discovered the odd, tangential connection it had to a newly-minted multi-million-dollar business. A burrito spot that got its start in a Home Depot parking lot recently evolved to open two entire restaurants, the pair of which brought in $2.3 million in sales in 2025, reports noted.
Known as LJ’s Lil’ Cafe, the business got its start in a 200-square-foot shed in a Home Depot parking lot. This led to a separate location in July 2025, and the two cleared the aforementioned $2.3 million figure. But even in the beginning, the location made around $150 a day just from Home Depot employees on a lunch break. But it was a glowing review in Eater that proved the catalyst for the business taking off, reports noted.
Is Home Depot a Good Long-Term Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on HD stock based on 17 Buys and three Holds assigned in the past three months, as indicated by the graphic below. After an 8.72% loss in its share price over the past year, the average HD price target of $425.06 per share implies 32.63% upside potential.
