The Container Store said late Sunday that it is filing for Chapter 11 bankruptcy protection after years of losses and declining sales.
The retailer, known for selling storage and organizational products, said its stores and online operations will remain open while it goes through the bankruptcy process. Customer deposits and orders will continue to be honored. The Container Store has more than 100 locations in the U.S.
The Container Store’s woes come during what’s been a tough year for some bricks-and-mortar retailers, which have seen store closures spike almost 70% this year. Through November, about 45 retailers have filed for bankruptcy protection in 2024, compared with 25 retail bankruptcies for 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 choosy in searching for sales and deals. The Container Store has posted losses for each of its last two fiscal years, while sales have plunged about 23% over that time.
The company said Sunday that it expects to have a reorganization plan within 35 days and emerge from bankruptcy protection soon after that.
“The Container Store is here to stay. Our strategy is sound, and we believe the steps we are taking today will allow us to continue to advance our business, deepen customer relationships, expand our reach and strengthen our capabilities,”The Container Store CEO Satish Malhotra said in the statement.
The bankruptcy doesn’t include its Elfa business in Sweden, according to the statement.
