NEW YORK (AP) — The Container Store has filed for bankruptcy protection as the storage and organizational goods retailer with roots dating back to 1978 struggles with mounting losses and cash flow shortages.
The Texas company has faced increasing competition from retailers such as Target and Walmart, while demand for its goods is under pressure in a rough housing market where rising prices and higher mortgage rates have hampered sales.
The company said Sunday it had filed for bankruptcy protection in Texas. The filing arrives two weeks after trading in company shares was suspended by the New York Stock Exchange. The Container Store Group Inc. failed to maintain an average market capitalization of at least $15 million in accordance with NYSE rules.
Last month, The Container Store said it was in advanced talks with lenders to provide additional capital as it looked to turn around slumping profits and sales, according to a filing with the regulator.
