The Container Store, a retailer based in Texas, announced on Sunday that it has filed for Chapter 11 Bankruptcy. However, the CEO asserted that the chain will continue to operate.

The Container Store Group, the parent company, stated that this filing is intended to strengthen its financial standing. They referred to it as a “recapitalization transaction” designed to support growth initiatives and improve long-term profitability.

The business, which specializes in storage and organization solutions, has faced ongoing challenges, including rising debt and poor sales performance. Recently, they reported a net loss of $30.8 million over 26 weeks in October and were removed from the New York Stock Exchange (NYSE) earlier in December.

According to the statement from the company, over 90% of its lenders have consented to the bankruptcy filing, which is projected to bring in $40 million in financing, lower the company’s debt by $45 million, and extend the repayment schedule for other outstanding loans.

Will any Container Store locations be closing?

In the announcement regarding bankruptcy, The Container Store did not disclose any impending store closures.

CEO Satish Malhotra stated on Sunday, “The Container Store is here to stay. Our strategy is solid, and we believe that the actions we are taking today will help us advance our business, strengthen customer relationships, expand our customer base, and enhance our capabilities.” A separate message on the company’s website confirmed that all stores will continue their usual operations throughout the 35-day process. Once completed, the company intends to operate privately.

The company also reassured employees that they would “see no change in [their] daily work because of this announcement.”

This bankruptcy filing does not impact its Elfa operations in Sweden.

Will customers still be able to use coupons and store cards at The Container Store?

The Container Store will continue to function fully for both in-store and online shopping.

The company emphasized that there would be no changes to customer experiences, meaning gift cards, store credit, product warranties, and the Organized Insider program will remain valid and usable.

Additionally, there are expected to be no alterations to product orders, deposits, or scheduled installations.