What's wrong with U.S retail chains? After Big Lots and Party City, now the Container Store files for bankruptcy
Container Store which is a 46 year old retail chain specializing in storage and organization solutions has eventually filed for Chapter 11 bankruptcy protection in a Texas district court, reported Npr.
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According to Npr, in spite of the significant financial challenges, the company still remains pretty committed to continuing operations with CEO Satish Malhotra assuring their customers that the business will ‘stay’ and also maintain its service quality.
The retailer is burdened with approximately $243 million in debt while holding just $11.8 million in cash. To navigate this severe financial crisis, the company plans to secure $40 million in new financing and develop a reorganization plan within the next 35 days, asserted Npr.
Its 102 nationwide locations and website will continue to operate normally during the bankruptcy process.
The bankruptcy follows a challenging period of declining sales with a 10.5% sales drop in the most recent quarter resulting in a $16 million loss. The company actually attributes its financial struggles to softening consumer demand and increased price sensitivity, noted Npr.
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