The Container Store Group, Inc., which operates 102 Container Store outlets in 34 states including the District of Columbia, has filed for Chapter 11 Bankruptcy protection in the United States Bankruptcy Court for the Southern District of Texas. The chain says that it expects to keep all of its stores open while the proceeding unfolds, and that would include the stores in White Plains and Yonkers. The Yonkers store is in Ridge Hill. The White Plains store is at the intersection of Bloomingdale Road and Westchester Avenue.
“The Container Store is here to stay,” said Container Store President and CEO Satish Malhotra. “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.”
Thee company said that it plans to operate its business as usual and will continue to serve customers without disruption in its retail outlets and on the internet. It said that at least 90% of its long-term lenders have pledged support for the bankruptcy proceeding during which new funding and debt relief will be provided. It said that its debt should be reduced from the current approximately $243 million to about $190 million. New funding of about $115 million was expected to be made available.
The company went public in 2013 and said it expected to emerge from the court proceedings as a private company under the ownership of its term loan lenders. It said that it has filed a motion with the bankruptcy court that will allow it to make timely payments to vendors, suppliers, and other trade creditors in full under normal terms for goods and services delivered both before and after the filing.
In a second quarter fiscal year presentation in late in October, the company reported a year to date net loss of $30.8 million on consolidated net sales of $196.6 million.
