The Container Store — once the premier hub for all things storage and organization — filed for bankruptcy amid mounting debt.
The 46-year-old retail chain filed for Chapter 11 bankruptcy protection late Sunday in a Texas district court. It comes just days after Big Lots and Party City announced they will be closing down for good in response to their own financial struggles.
In a company statement, the Container Store said the bankruptcy process will have no impact on customers. Its 102 locations nationwide and 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."
The company has amassed over $243 million in debt, while having about $11.8 million cash in hand, according to court documents. It plans to receive $40 million in new financing and confirm a reorganization plan within 35 days.
The popular depot, known for its vast selection of storage bins, shelving units and home decor, has been struggling for a while now. In the latest quarter, which ended in September, sales declined by 10.5% over the previous year, resulting in a loss of $16 million.
The company's bankruptcy filing comes just two months after it struck a deal to feature products from the previously shuttered Bed Bath & Beyond in its stores.
During the earnings call in October, the Container Store's chief financial officer, Jeff Miller, attributed the company's financial challenges to "softening demand and increased price sensitivity."
The Container Store is the latest retail chain to fall victim to bankruptcy. In September, Big Lots filed for bankruptcy with hopes of being acquired by a private equity group. Last week, the discount retailer announced that the deal fell through and it would launch going-out-of-business sales. Then on Saturday, Party City announced it had filed for bankruptcy and plans to permanently close all of its locations.
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