OAN Staff Abril Elfi
6:12 PM – Monday, December 23, 2024
The Container Store has filed for Chapter 11 bankruptcy protection.
On Sunday, the Container Store announced that the bankruptcy process will have no impact on customers in a company statement.
Its 102 store locations nationwide and the company website will continue to operate as normal.
“The Container Store is here to stay,” CEO Satish Malhotra said in a statement. “We intend to maintain our strong workforce and remain committed to delivering an exceptional experience for our customers while we execute this recapitalization and for many years to come.”
Court documents have noted that the company has accumulated more than $243 million in debt while having around $11.8 million cash in hand.
Within 35 days, it hopes to confirm a reorganization plan and secure $40 million in new funding.
The depot, which is well-known for its extensive assortment of shelving units, storage bins, and home décor, has been having difficulties for some time.
The most recent quarter, which concluded in September, saw a $16 million loss due to a 10.5% drop in revenue compared to the prior year.
Only two months after the company reached an agreement to carry Bed Bath & Beyond’s products in its stores, it filed for bankruptcy.
During the October results call, Jeff Miller, the chief financial officer of the Container Store, blamed the company’s financial difficulties on “softening demand and increased price sensitivity.”
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