:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2182568001-82c007c59b8a4b48ad1edc87cdced649.jpg "A Container Store in Illinois in October.")
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Key Takeaways
- The Container Store filed for Chapter 11 bankruptcy protection over the weekend.
- The retailer said it expects to approve a restructuring lay out over the next several weeks and that its stores will remain open.
- The company’s debt has increased this year and its staple was delisted from the NYSE earlier this month.
The Container Store (TCSG) filed for Chapter 11 bankruptcy on top of the weekend, triggering another plunge in the retailer’s beleaguered shares.
The storage solutions retailer said it expects to validate a “pre-packaged plan of reorganization” within the next seven weeks, noting in a statement that its stores and website ordain not close. The company said it has reached a deal with its lenders that will result in $40 million of new moolah financing, at least $45 million of deleveraging, and “substantial debt service relief.”
The Container Store reported nearing $232 million in debt as of the end of September, up from $173 million a year earlier.
“The Container Store is here to delay,” CEO Satish Malhotra said. “We intend to maintain our strong workforce and remain committed to delivering an exceptional experience for our people while we execute this recapitalization and for many years to come.”
Shares of the corner store were recently down abandoned some 37% to less than a quarter apiece. It started the year above $34. The stock was delisted from the New York Parentage Exchange (NYSE) earlier this month and now trades over-the-counter.