The Container Store files for bankruptcy amid sinking sales

Source: Washington Post

The Container Store filed for bankruptcy protection in Texas over the weekend as it tries to shuck mounting debt and reverse the ebbing tide of shoppers in its stores.

The retailer joins others in the home goods space that have shared grim outlooks during the holiday period, as housing market pressure puts a strain on the sector. While some mass discounters and online retailers have benefited from consumer belt-tightening, legacy retailers are feeling the burn: On Saturday, Party City confirmed it would begin closing its more than 700 stores after nearly four decades in business. Last week, Big Lots said it planned to liquidate its remaining 900 stores after a previously announced asset sale fell through.

Both announcements feed into a rash of store closures, which eclipsed openings in 2024. More than 7,300 retail locations have closed shop this year, a spike of nearly 3,000 from last year, according to data from Coresight. A little more than 5,800 stores have opened.

The Container Store said no layoffs or store closures were imminent. At the time of filing Sunday night, the Container Store reported $243 million in debt. At least 90 percent of the firm’s loan lenders agreed to provide the company $40 million in new financing, the company said Sunday in a news release.

Read more: https://www.washingtonpost.com/business/2024/12/23/container-store-bankruptcy-sale/