The Container Store said late Sunday it is filing for Chapter 11 bankruptcy protection after years of losses and declining sales.
The retailer, known for its sales of storage and organization products, said its stores and online operations will remain open while it continues through the bankruptcy process. Customer deposits and orders will be honored. The Container Store has more than 100 locations in the US
The Container Store’s troubles come during what has been a difficult year for a number of brick-and-mortar retailers, who have experienced store closures peak almost 70% this year. Through November, about 45 retailers have filed for bankruptcy protection in 2024, compared to 25 retail bankruptcies in all of 2023, according to a recent CoreSight report.
Some retailers are struggling to attract inflation-weary customers who are cutting back or becoming more picky about deals and offers. The Container Store has made a loss in each of the past two financial years, with sales down approximately 23% over that period.
The company said Sunday that it has negotiated and sought support for a prepackaged reorganization plan and expects the entire process to take less than 35 days.
“The Container Store is here to stay. Our strategy is sound and we believe the steps we are taking today will allow us to advance our business, deepen customer relationships, expand our reach and strengthen our capabilities,” said the CEO of The Container Store. Satish Malhotra said in the statement.
According to the statement, the bankruptcy does not include Elfa’s activities in Sweden.
