The Container Store is the latest retailer to file for bankruptcy.
The company said that the shopping process will remain unchanged for consumers throughout the bankruptcy process; however, the retailer has experienced declining sales for the last few years, and it’s finally come to a head.
The retailer explained that 90% of its lenders have agreed to the bankruptcy process, and the company expects to wrap everything up in the next 35 days. In addition, the company’s lenders have agreed to invest $40 million into The Container Store, which will help lower debt obligations.
Things aren’t changing for consumers, employees
With over 100 stores across the country, consumers can expect their shopping experience to remain relatively unchanged. Stores will remain open during the bankruptcy process, and shoppers will also be able to make online orders and schedule in-home organization services.
Additionally, employees can expect to retain their positions, their paychecks and all benefits.
Despite the financial issues, representatives from the company are confident that the retailer will bounce back stronger.
“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,” said Satish Malhotra, CEO of The Container Store.
“We are particularly excited about the future of our custom space offerings, which continue to demonstrate strength. I want to thank our incredibly talented employees for their continued dedication, our customers, partners, and vendors for their support, and our lenders who clearly see the strong potential in our business. We intend to maintain our strong workforce and remain committed to delivering an exceptional experience for our customers while we execute this recapitalization and for many years to come.”