THE Container Store has issued a defiant message to customers that the company is not going anywhere despite filing for Chapter 11 bankruptcy.
The Container Store CEO Satish Malhotra said the “Container Store is here to stay,” insisting the bankruptcy process would help the company strengthen its business.
The Container Store CEO has issued a defiant message to customers insisting there will be no store closures[/caption]
Malhotra said the business would continue to support its workforce and its customers’ needs.
“We are particularly excited about the future of our custom space offerings, which continue to demonstrate strength,” Malhotra said.
“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.”
The comments came as the popular home goods retailer filed for bankruptcy.
The chain, founded in 1978, has seen a dip in sales, and bosses are now scrambling to clear debts of more than $240 million.
The bankruptcy process is expected to take around 35 days.
No stores are expected to close yet, but execs have not ruled out the prospect of closures all together.
“If they do not achieve meaningful rent reductions, they may be forced to close a select few locations,” a source told Yahoo Finance.
The Container Store is one of the retailers that have struggled post-pandemic.
It has been unprofitable for the past two years, having reported losses of around $10 million at the end of September 2024.
In 2024, revenue took a 10.5% fall compared to last year, and store sales have plunged by around 12.5%.
This is despite Malhotra’s initiatives to drive growth and profitability.
The Container Store’s bankruptcy process comes after a number of other popular retailers announced closures.
Big Lots and Party City announced they’re “going out of business” and closing shop for good.
Both chains have struggled to stay alive in a competitive retail landscape.
All three retailers have amassed debt and despite the holiday shopping season as a time when stores can see a boost in sales, it’s not going to be enough for at least two.
US braces for ‘45,000 store closures’
Some 45,000 bricks-and-mortar stores could close in the next five years, experts have warned.
Several major retailers have announced store closures or gone out of business altogether in recent years.
Chains such as Foot Locker, Sally Beauty, Tuesday Morning, Shore City, Z Gallerie, and Mitchell Gold + Bob Williams have all gone out of business.
Bed Bath & Beyond has closed all of its brick-and-mortar stores and is now an online-only retailer.
The most affected retailers have been clothing, consumer electronics, sporting goods, hobby, book, music, and home furnishing stores since the start of 2019.
UBS has predicted the total number of retail stores will drop by 45k from 958k to 913k.
Despite that, the report says that certain stores should thrive while others decline.
It said retailers such as Walmart, Costco, Home Depot, and Target, could be among the winners.
BIG LOTS
Big Lots, the discount retail chain which started in 1967, made the announcement Thursday that it will begin “Going Out of Business” sales at all its stores.
Big Lots filed for bankruptcy in September and was hoping to sell its assets but that deal has stalled and now the company does not anticipate any sale.
At the time of the filing, Big Lots planned to close about 545 stores to reduce its footprint.
Now, the retailer made the decision to close all 963 stores just three month after going bankrupt.
Big Lots states on its website that location closures will depend on remaining inventory.
PARTY CITY
The party’s over at Party City as the nationwide chain said it was going out of business and closing all 750 locations.
The news is a blow to customers who are left with fewer choices for one-stop party supply shopping.
Party City filed for bankruptcy in January 2023 and emerged from Chapter 11 in October 2023 with about $1 billion less debt.
The U.S. Sun has more on Party City’s CEO admitting he did “everything possible” to avoid closure.
Plus, a deeper dive into The Container Store’s latest bankruptcy.
