Texas-based retailer The Container Store files for Chapter 11 bankruptcy
Coppell-based retailer The Container Store announced in a press release on Dec. 22 that it is filing for Chapter 11 bankruptcy.
Ninety percent of the company’s lenders agreed to a transaction support agreement where they will provide The Container Store with $40 million, reducing its debt by $45 million. The store delisted from the New York Stock Exchange in early December and reported a $30.8 million loss over 26 weeks.
The Container Store is based in Coppell, Texas. It is the nation’s leading retailer of organizing solutions, custom spaces and in-home services, according to the press release.
The company’s bankruptcy filing should not affect any of its 102 stores across 34 states. They Container Store also ensured its more than 5,000 employees would keep their jobs as normal.
“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,” Container Store Chief Executive Officer and President Satish Malhotra said.
What is Chapter 11 bankruptcy?
According to the United States Courts, Chapter 11 bankruptcy is also referred to as “reorganization bankruptcy.”
“Usually, the debtor remains “in possession,” has the powers and duties of a trustee, may continue to operate its business, and may, with court approval, borrow new money
What does this mean for The Container Store customers?
As for The Container Store customers, nothing will change.
“Throughout this process, the Company will operate its business as usual and will continue to provide high-quality products and in-home services to its customers without disruption,” according to the press release. “The Company’s stores and website will continue to operate as normal; all customer deposits and orders will be honored and delivered as normal.”
Coupons, gift cards and discounts will not be affected.
Where is The Container Store in North Texas?
There are a few Container Stores in Dallas-Fort Worth for shoppers to visit.
Fort Worth: 4601 West Freeway, Suite 500, Fort Worth
Arlington: 4000 Arlington Highlands Blvd, Suite 101, Arlington
Southlake: 1200 Main Street, Southlake
Dallas Galleria: 13710 Dallas Parkway, Suite B, Dallas (custom closet store)
Dallas: 7700 West Northwest Highway, Dallas
Plano: 8460 Parkwood Blvd., Plano
Fairview: 151 East Stacy Road, Fairview