Is The Container Store Closing?

The Container Store has officially filed for bankruptcy.

So what happens to the popular home storage and organization chain?

According to CBS News, the Texas-based company said that its stores and online operations will remain open throughout its Chapter 11 bankruptcy process.

The chain has more than 100 locations across the United States.

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The outlet reported that The Container Store's problems are not unique, because around 45 retailers have filed for bankruptcy in 2024, an increase from the 25 companies who did the same in 2023.

Plus, there was a 70% spike in store closures this year.

However, despite the bleak aura of filing for bankruptcy, the company is not concerned.

"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," The Container Store CEO Satish Malhotra said in the statement.

According to the New York Post, The Container Store thrived during the COVID-19 pandemic when people were stuck at home and more likely to remodel.

However, their sales have been declining in the years since and couldn't compete with the likes of Walmart, Target or Amazon.

In a recent earnings report, the store said its problems were "reduced consumer spending in the store and organization category and increased price sensitivity."

On Dec. 9, the company was even delisted from the New York Stock Exchange, per the outlet.

The Container Store's woes follow Party City's announcement that it is shuttering all of its stores for good.

And they're not alone – Big Lots also announced its operations are coming to an end last week.

The discount chain once operated over 1,400 stores in the U.S.