The Container Store is filing for bankruptcy. Here’s what will happen to its stores.
container store explain Late Sunday, the company was filing for Chapter 11 bankruptcy protection after years of losses and declining sales.
The retailer, known for selling storage and organization products, said its stores and online operations will remain open during the bankruptcy proceedings. Customer deposits and orders will continue to be honored. The Container Store has more than 100 locations across the United States
The container store’s plight comes in a difficult year for some brick-and-mortar retailers, which have closed stores spike This year it’s close to 70%. As of November, about 45 retailers had filed for bankruptcy protection in 2024, according to a recent CoreSight report, and 25 had gone bankrupt in all of 2023.
Some retailers are trying to attract inflation-weary customers who are spending less or becoming more picky when looking for sales and deals. The Container Store has posted losses in each of the past two fiscal years, with sales down about 23% during that period.
The company said on Sunday it had negotiated and solicited support for a pre-planned restructuring plan and expected the entire process to be completed within 35 days.
“The Container Store is here to stay. Our strategy is sound and we believe the steps we take today will allow us to continue to advance our business, deepen customer relationships, expand our reach and enhance our capabilities,” said Container Store Chief Executive Officer Officer Satish Malhotra said in a statement.
The bankruptcy does not include its Elfa business in Sweden, the statement said.
