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The Container Store Files for Bankruptcy
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Main points
- The Container Store filed for Chapter 11 bankruptcy protection over the weekend.
- The retailer said it expected approval of a restructuring plan in the coming weeks and that its stores would remain open.
- The company’s debt has increased this year and its shares were delisted from the New York Stock Exchange earlier this month.
container store (TCSG) Apply Chapter 11 The weekend bankruptcy triggered another plunge in the retailer’s troubled stock price.
The storage solutions retailer said it expected to confirm “pre-packaged restructuring plans” within the next seven weeks, noting in a statement that its stores and website would not be closing. The company said it has reached an agreement with its lenders to secure $40 million in new funding, including at least $45 million deleveragingand “significant debt relief.”
Container Store had nearly $232 million in debt as of the end of September, up from $173 million a year ago.
“Container stores are here to stay” CEO Satish Malhotra said. “As we execute our recapitalization and for many years to come, we intend to retain our strong workforce and remain committed to delivering an exceptional experience for our customers.”
Shares of the corner store have recently fallen about 37%, to less than a quarter a share. The price at the beginning of this year was above $34. The stock has been delisted New York Stock Exchange (NYSE) Earlier this month, trade now over the counter.
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