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The Key Takeaways
- The Container Store declared bankruptcy on Saturday.
- The retailer stated that they expect to be able to approve the restructuring plan in the next few weeks. They also said their stores would remain open.
- The company's debt has increased this year and its stock was delisted from the NYSE earlier this month.
The Container Store filed for Chapter 11 bankruptcy at the weekend. This triggered another drop in shares of the struggling retailer.
It is expected that the storage solutions retailer will confirm its a “pre-packaged plan of reorganization” In a press release, the company said that it will continue to operate its online store and stores for at least seven more weeks. It said that it had reached an agreement with its creditors, which will lead to $40 million in new financing and at least $45 millions of debt reduction. “substantial debt service relief.”
At the end of last September, Container Store reported a nearly $232-million debt. That’s up from an estimated $173-million just a year ago.
“The Container Store is here to stay,” CEO Satish Malhotra said. “We intend to maintain our strong workforce and remain committed to delivering an exceptional experience for our customers while we execute this recapitalization and for many years to come.”
The corner store’s shares dropped 37% in recent weeks to less than one quarter. The stock started out the year at over $34. Stock was taken off the New York Stock Exchange earlier this month. Now it is traded over the counter.
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