Chain retailer The Container Store, which specializes in organizational and storage-related products, has filed for Chapter 11 bankruptcy protection in Texas as customers increasingly begin to cut back on discretionary spending.
The announcement came on Sunday, with the company aiming to use the protection to "bolster its financial position, fuel growth initiatives, and drive enhanced long-term profitability." The company will continue to operate and its 102 locations will remain open for business as it restructures, reported CNN.
"The Container Store is here to stay," said CEO Satish Malhotra in a statement. "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."
"We are particularly excited about the future of our custom space offerings, which continue to demonstrate strength," he continued.
This announcement comes just on the heels of Party City CEO Barry Litwin informing employees that the company would be shutting down all store locations effective immediately, with Dec. 20 being their last day of work.
"It's really important for you to know that we've done everything possible that we could to try to avoid this outcome," Litwin told corporate employees, according to reporting by CNN. "Unfortunately, it's necessary to commence a winddown process immediately."
In fact, many notable businesses have been forced to file for bankruptcy this year, with inflation and subsequent rising labor costs accounting for just some of the reasons why companies are forced to file.
Some of the companies going out of business, such as Conn's HomePlus and Sam Ash Music, were founded over a century ago. Others, such as Red Lobster, Spirit Airlines and LL Flooring, will be restructuring under Chapter 11 bankruptcy protection similarly to The Container Store.
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