Container Store files for bankruptcy. Will the Indianapolis location close?

The Container Store is reorganizing itself.

Container Store Group Inc., owner of the retail bastion of the home organization, announced that it has filed for Chapter 11 bankruptcy.

The process will take 35 days, and The Container Store will shortly thereafter become a private company owned by its lenders with term loans, with a healthy financial profile prepared to drive long-term growth, the company said.

The Container Store, which said it has received support for the restructuring plan from vendors and stakeholders, will continue to pay vendors, suppliers and other creditors for goods and services delivered, both before and after the filing.

Will The Container Stores close due to bankruptcy?

The Coppell, Texas-based company said the filing will have no impact on its customers or locations.

The company and its branches will continue to operate as usual throughout the process. The site will continue to accept and deliver all customer deposits and orders as usual, it said.

Why is The Container Store bankrupt?

The intent is to “strengthen its financial position, advance growth initiatives and increase long-term profitability,” the company said.

The company said it has about $230 million in debt and just $11.8 million in cash, but will raise $40 million in new financing.

“The container store will stay. Our strategy is sound and we believe the steps we are taking today will enable us to further advance our business, deepen customer relationships, expand our reach and strengthen our capabilities,” CEO Satish Malhotra said in the press release, in which he announced the measure. “We are particularly excited about the future of our tailored space offerings, which continue to demonstrate their strength.”

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Container Store files for bankruptcy. Will the Indianapolis location close?

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