Container Store has filed for bankruptcy, the latest of several major retail chains to make that decision, following similar announcements from Party City, Big Lots, True Value and Rite Aid.
The storage and organization brand, which has 102 locations, plans to remain open through the approximately 35-day process to obtain Chapter 11 bankruptcy protection, according to CNN. reported.
The company filed with the U.S. Securities and Exchange Commission (SEC) on Sunday, officials said. document revealed.
The Texas-based company, founded in 1978, said in a statement that filing for bankruptcy will help it “strengthen our financial position, accelerate our growth initiatives and accelerate long-term profitability.” Ta.
The company, which has about $230 million in debt and only $11.8 million in cash on hand, plans to take out a new $40 million loan, according to court documents.
the news will come later report Party City, a retailer of accessories and costumes, plans to close all of its stores in February 2025, after filing for bankruptcy in January 2023 and exiting in September 2023.
“Please know that we have done everything in our power to avoid this outcome,” Party City CEO Barry Litwin reportedly said in a video call Friday. is very important,” he said. Saw By CNN. “Unfortunately, we must begin the downsizing process immediately.”
Big Lots, a discount retailer, also Under preparation Then all stores will be closed filing More than 400 stores have gone bankrupt and closed this year, Breitbart News reported Friday.
In October, True Value, a major hardware supplier with 4,500 locations across the U.S. and abroad, also filed for Chapter 11 bankruptcy, according to reports. entered come to an agreement The entire business will be sold to rival chain Do it Best Corp.
“After a thorough evaluation of strategic alternatives, we have determined that a divestiture is the path forward to maximize value and best serve our retail partners and other stakeholders well into the future. ” said True Value CEO Chris Kempa. said in press release.
Since Rite Aid, a pharmacy and convenience store chain, filed for Chapter 11 bankruptcy protection in October 2023, the number of stores has increased to approximately 2,000. 1,100 By August 2024.
