The Container Retailer mentioned the chapter course of can have no affect on clients and that it’ll hold all 102 of its U.S. areas open.
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Smith Assortment/Gado/Getty Photos
The Container Retailer — as soon as the premier hub for all issues storage and group — filed for chapter amid mounting debt.
The 46-year-old retail chain filed for Chapter 11 chapter safety late Sunday in a Texas district court docket. It comes simply days after Huge Heaps and Social gathering Metropolis introduced they are going to be closing down for good in response to their very own monetary struggles.
In a firm assertion, the Container Retailer mentioned the chapter course of can have no affect on clients. Its 102 areas nationwide and web site will proceed to function as regular.
“The Container Retailer is right here to remain,” CEO Satish Malhotra mentioned in an announcement. “We intend to keep up our sturdy workforce and stay dedicated to delivering an distinctive expertise for our clients whereas we execute this recapitalization and for a few years to return.”
The corporate has amassed over $243 million in debt, whereas having about $11.8 million money in hand, in response to court docket paperwork. It plans to obtain $40 million in new financing and ensure a reorganization plan inside 35 days.
The favored depot, recognized for its huge collection of storage bins, shelving items and residential decor, has been struggling for some time now. Within the newest quarter, which resulted in September, gross sales declined by 10.5% over the earlier yr, leading to a lack of $16 million.
The corporate’s chapter submitting comes simply two months after it struck a deal to function merchandise from the beforehand shuttered Mattress Tub & Past in its shops.
Through the earnings name in October, the Container Retailer’s chief monetary officer, Jeff Miller, attributed the corporate’s monetary challenges to “softening demand and elevated value sensitivity.”
The Container Retailer is the most recent retail chain to fall sufferer to chapter. In September, Huge Heaps filed for chapter with hopes of being acquired by a non-public fairness group. Final week, the low cost retailer introduced that the deal fell by means of and it might launch going-out-of-business gross sales. Then on Saturday, Social gathering Metropolis introduced it had filed for chapter and plans to completely shut all of its areas.
