The Container Retailer mentioned the chapter course of may have no impression on prospects and that it’ll preserve all 102 of its U.S. places 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 courtroom. It comes simply days after Big Lots and Occasion Metropolis introduced they are going to be closing down for good in response to their very own monetary struggles.
In a company statement, the Container Retailer mentioned the chapter course of may have no impression on prospects. Its 102 places nationwide and web site will proceed to function as regular.
“The Container Retailer is right here to remain,” CEO Satish Malhotra mentioned in a press release. “We intend to take care of our sturdy workforce and stay dedicated to delivering an distinctive expertise for our prospects 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, based on courtroom paperwork. It plans to obtain $40 million in new financing and make sure a reorganization plan inside 35 days.
The favored depot, recognized for its huge choice 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 characteristic 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 newest retail chain to fall sufferer to chapter. In September, Large Tons filed for chapter with hopes of being acquired by a personal fairness group. Final week, the low cost retailer introduced that the deal fell by way of and it might launch going-out-of-business gross sales. Then on Saturday, Occasion Metropolis introduced it had filed for chapter and plans to completely shut all of its places.
