Dec. 23 (UPI) — During what has been a rough year for some big-name American retailers, the CEO of The Container Store said on Monday that the company is “here to stay” and looking at the future despite its bankruptcy and financial restructuring.
“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,” Satish Malhotra, The Container Store’s CEO, wrote in a release.
The company announced Sunday night that it was filling for Chapter 11 bankruptcy protection after years of financial losses. However, company officials said the firm’s store and online retail operations will remain open while it proceeds with its restructuring process.
“We intend to maintain our strong workforce” throughout the process, Malhotra added.
The company, which sells home storage and other related products, has more than 100 U.S. locations. But not included in the bankruptcy proceedings is the company’s Elfa business in Sweden, officials said.
The restructuring will involve some $40 million of new financing and at least $45 million for deleveraging and debt-service relief.
The 46-year-old company said it declared Chapter 11 bankruptcy to allow for timely payments to its current vendors, suppliers and other trade creditors.
Monday’s news arrived on the heels of a rough few months and years for retailers with the announcements of the recent high-profile closures of retailers Big Lots and Party City.
Roughly 45 retailers filed for bankruptcy this year versus the 25 total retail bankruptcies in 2023, according to CoreSight.
Meanwhile, Malhotra went on to say that the Texas-based company is “particularly excited” about its future in other areas “which continue to demonstrate strength” as he thanked key stakeholders “who clearly see the strong potential in our business,” he said this week.