The Container Store Files For Bankruptcy

(RTTNews) - The Container Store Monday announced that it has filed for bankruptcy protection as the company struggles with losses.

Container Store and certain of its subsidiaries filed for voluntary protection under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas on December 22, 2024.

The company said it will implement a recapitalization transaction to bolster its financial position, fuel growth initiatives, and drive enhanced long-term profitability.

The company will continue to operate its business as usual and will continue to provide high-quality products and in-home services to its customers without disruption.

At least 90% of the company's lenders agreed to support its bankruptcy plan, which would provide the company with $40 million in fresh financing, help it reduce its debt by at least $45 million and ease debt payments as well as extend the time it has to pay off remaining debts.

The company said it will continue to operate its business as usual and provide products and in-home services to customers "without disruption." Additionally, its stores and its website will "continue to operate as normal." The company also said all the customer deposits and orders will be honored and delivered as normal.

The filing comes two weeks after the trading of company's stock was suspended by the New York Stock Exchange. Container Store failed to maintain an average market capitalization of at least $15 million in accordance with NYSE rules.

Last month, the company said that it was in advanced discussions with lenders to provide additional capital.