Popular home storage and organization retailer The Container Store intends to file for Chapter 11 bankruptcy, the company announced Sunday.
In a release, the Texas-based company said the transaction will "bolster its financial position, fuel growth initiatives and drive enhanced long-term profitability." The company expects to confirm a reorganization plan within 35 days, the release said.
A letter sent to The Container Store customers from President and CEO Satish Malhotra said the retailer has "felt the impact of the challenging macro-economic environment," and that the intended filing was an "important step" to continue serving customers for "years to come."
“The Container Store is here to stay," Malhotra said in the release. "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”
Despite the filing, the company intends to operate its business "as usual," without disruption to customers.
"The Company’s stores and website will continue to operate as normal; all customer deposits and orders will be honored and delivered as normal," the release said.
According to Malhotra, there will be no impacts to The Container Store credit card, warranties or loyalty benefits. Elfa, Avera and Preston installations were expected to continue as expected, the release added.
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"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," Malhotra said in the release.
The Container Store operates more than 100 stores across the U.S., with six stores in the Chicago area.
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The announcement comes days after party and balloon supplier Party City announced it would "wind down" operations, with plans to close all stores.
