[Update from Dec. 27, 2024] The Container Store filed for Chapter 11 bankruptcy on Dec. 22 to facilitate a recapitalization effort aimed at bolstering its finances. The company said in a statement that it expects the process to take just 35 days, during which time the business will operate as usual with both stores and its website remaining open. Under the plan, a group of The Container Store’s current lenders have committed to invest an additional $40 million.
“The Container Store is here to stay; 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,” said Satish Malhotra, CEO and President of The Container Store in the statement. “We are particularly excited about the future of our custom space offerings, which continue to demonstrate strength. 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.”
Original story from Dec. 11, 2024 begins-
The New York Stock Exchange (NYSE) has begun proceedings to delist the common stock of The Container Store Group, beginning with an immediate suspension of trading on the stock.
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The retailer received a warning in May 2024 after its stock dipped below an average trading price of $1 for more than 30 days. However, the company’s stock got a big bump in October on the announcement of a joint venture with Bed Bath & Beyond owner Beyond, Inc., which included a planned $40 million investment in The Container Store. However, that deal fell through just a month later when Beyond raised concerns about the company’s ability to meet the financing requirements of the agreement.
Now the NYSE said that The Container Store qualifies for delisting because it has failed to maintain the required average global market capitalization of at least $15 million for the last 30 days. The Container Store has the right to appeal the decision with the Securities and Exchange Commission.
The Container Store did not immediately respond to Retail TouchPoints’ request for comment.
