The Container Store said late Sunday that it’s submitting for Chapter 11 chapter safety after years of losses and declining gross sales.
The retailer, identified for promoting storage and organizational merchandise, mentioned its shops and on-line operations will stay open whereas it goes by means of the chapter course of. Customer deposits and orders will proceed to be honored. The Container Store has greater than 100 places within the U.S.
The Container Store’s woes come throughout what’s been a tricky 12 months for some bricks-and-mortar retailers, which have seen retailer closures spike nearly 70% this 12 months. Through November, about 45 retailers have filed for chapter safety in 2024, in contrast with 25 retail bankruptcies for all of 2023, in response to a current CoreSight report.
Some retailers are struggling to draw inflation-weary prospects who’re reducing again or turning into extra picky in trying to find gross sales and offers. The Container Store has posted losses for every of its final two fiscal years, whereas gross sales have plunged about 23% over that point.
The firm mentioned Sunday that it expects to have a reorganization plan inside 35 days and emerge from chapter safety quickly after that.
“The Container Store is right here to remain. Our technique is sound, and we imagine the steps we’re taking right now will enable us to proceed to advance our enterprise, deepen buyer relationships, develop our attain and strengthen our capabilities,”The Container Store CEO Satish Malhotra mentioned within the assertion.
The chapter would not embody its Elfa enterprise in Sweden, in response to the assertion.
