The Container Store Files C11 Bankruptcy

The Container Store Group Inc. (Coppell, Texas) announced it will undertake a recapitalization transaction of $40 million to bolster its financial position, fuel growth initiatives and drive enhanced long-term profitability. To help in that process, The company and some of its subsidiaries filed for voluntary protection under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas on Dec. 22.

Throughout this process, the company – a retailer of organizing solutions, a Custom Spaces offering and in-home services – said it will operate its business as usual.

“The Container Store is here to stay,” said President and CEO Satish Malhotra. “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. We are particularly excited about the future of our Custom Spaces offerings, which continue to demonstrate strength.”

The Chapter 11 process does not include the company’s Elfa business in Sweden. It comes in the aftermath of The Container Store’s deal with Beyond, parent company of Bed, Bath & Bath, falling apart earlier this fall.

Founded in 1978, The Container Store Group Inc. has just over 100 locations nationwide.