Iconic retailer The container store later filed for bankruptcy protection almost half a century of business amid financial problems and industry pressures.
Acclaimed”the country’s leading retailer of organization solutions, personalized spaces and home services,“, the Texas-based chain filed for protection on December 22.
“The Container Store is here to stay,” the company wrote in a statement.
“Our strategy is sound and we believe the steps we are taking today will allow us to continue to advance our business, deepen our customer relationships, expand our reach and strengthen our capabilities.”
Most of The Container Store’s lenders entered into a transaction support agreement that will provide the company with $40 million to refinance and additional funds for debt relief.
The company will continue to operate as usual, including its online operations and its 102 stores nationwide.
The company said the bankruptcy filing was a “important step to strengthen our business“, adding to the $40 million certain lenders have committed to investing in the company”reduce significantly” its long-term debt obligations.
“At the end of this process, our lenders will be the new owners of our business and we expect The Container Store to be a private company.” the company said in a statement.
The container store has accumulated more than $243 million in debt, court documents show. he saw a 10.5% decrease in sales in the last quarter compared to sales recorded during the same period last year.
The mentioned company the “persistently challenging retail environment, including reduced consumer spending in the storage and organization category and increased price sensitivity,” as factors affecting the company’s performance.
According to its quarterly reports, the company said in October that it expected to “continue to incur significant expenses” related to financial restructuring.
The company operates four locations in eastern Massachusetts.