The Container Store announced Sunday evening that it was filing for Chapter 11 bankruptcy protection after years of losses and declining sales.
The retailer, known for selling storage and organization products, said its stores and online operations will remain open during the bankruptcy process. Customer deposits and orders will continue to be honored. The Container Store has over 100 locations across the United States
The Container Store’s woes come during a difficult year for some brick-and-mortar retailers, which have seen stores close. tip almost 70% this year. Through November, about 45 retailers filed for bankruptcy protection in 2024, compared to 25 retail bankruptcies for all of 2023, according to a recent report from CoreSight.
Some retailers are struggling to attract inflation-weary customers who are cutting back on sales or becoming more discerning in their search for sales and deals. The Container Store posted losses for each of its last two fiscal years, while sales plunged about 23% during that period.
The company said Sunday that it has negotiated and solicited support for a pre-arranged reorganization plan and expects the entire process to take less than 35 days.
“The Container Store is here to stay. Our strategy is strong 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 to strengthen our capabilities,” said Container Store CEO. Satish Malhotra said in the statement.
The bankruptcy does not concern its Elfa activities in Sweden, according to the press release.
