The Container Store Seeks Bankruptcy Protection – One America News Network
OAN Staff Abril Elfi
6:12 PM – Monday, December 23, 2024
The Container Store has initiated Chapter 11 bankruptcy proceedings.
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On Sunday, the company announced that the bankruptcy process will not affect customers according to a statement released by the company.
All 102 store locations nationwide and the company’s website will continue to function as usual.
“The Container Store is here to stay,” stated CEO Satish Malhotra. “We plan to keep our dedicated workforce and are committed to providing an outstanding experience for our customers while we proceed with this recapitalization and in the years ahead.”
Documents filed in court reveal that the company has incurred over $243 million in debt, while holding approximately $11.8 million in cash.
Within 35 days, the company aims to finalize a reorganization plan and secure $40 million in new financing.
Renowned for its wide range of shelving units, storage containers, and home decor items, the retailer has been facing challenges for quite some time.
In the most recent quarter ending in September, the company reported a $16 million loss alongside a 10.5% decrease in revenue compared to the same period last year.
Just two months after finalizing an agreement to stock products from Bed Bath & Beyond, the company filed for bankruptcy.
During the earnings call in October, Chief Financial Officer Jeff Miller attributed the company’s financial struggles to “softening demand and increased price sensitivity.”
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