Important points
The Container Store (TCSG) filed for Chapter 11 bankruptcy protection over the weekend, triggering another plunge in the beleaguered retailer’s stock price.
The storage solutions retailer said in a statement that it expects to confirm a “pre-packaged restructuring plan” within the next seven weeks and that no stores or website will be closed. The company announced it has reached an agreement with lenders that will provide it with $40 million in new financing, at least $45 million in deleveraging and “significant debt service relief.”
Container Store reported nearly $232 million in debt at the end of September, up from $173 million in the year-ago period.
CEO Satish Malhotra said, “The Container Store is here to stay. We will maintain a strong workforce and deliver a great experience to our customers as we execute this recapitalization and for years to come. I will continue to work hard to do so.”
The corner store’s stock price has recently fallen about 37%, or less than a quarter per share. At the beginning of the year, it was above $34. The stock was delisted from the New York Stock Exchange (NYSE) earlier this month and is now traded over the counter.
