The Container Store (TCS) is under new ownership following its emergence from Chapter 11 bankruptcy court supervision.
The storage and organization retailer is now a private company under the ownership of its lenders—which include Golub Capital, Wells Fargo and LCM Asset Management—via a debt-for-equity exchange. Through the Chapter 11 process, the specialty retailer was able to shed over $87 million in debt. Specifically, the retailer refinanced short-term debt, reduced long-term debt obligations, accessed $40 million in new financing, and modified an existing asset-base lending facility to add $40 million in upsized capacity.
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More importantly, TCS was able to keep 102 stores in operation during the month-long tour of bankruptcy proceedings and save nearly 4,000 jobs.
“This is a new chapter in our journey as a healthier company well positioned to drive strategic growth initiatives forward,” TCS president and CEO Satish Malhotra said. “We are focused on optimizing our business, enhancing our portfolio of organizing solutions and services, and continuously improving the customer experience.”
The specialty chain filed its Chapter 11 petition in late December, but it was filed as a pre-packaged bankruptcy. That meant it had an agreement in place with the support of lenders. The then public firm warned of going-concern risks earlier last month, and subsequently saw its common shares delisted after failing to meet certain New York Stock Exchange listing requirements. The retailer’s struggles also meant it was unable to close on a strategic partnership with Beyond Inc., which was slated to invest $40 million in the chain in exchange for floor space at select TCS doors for a line of co-branded products.
Founded in 1978 by Garret Boone, Kip Tindell, and investor John Mullen when they opened the first Container Store in Dallas, the retailer operates in the tough—and largely distressed—home market. In 2023, there was a cycle of home bankruptcies—Bed Bath & Beyond bankruptcy, but also Tuesday Morning for the second time, Serta Simmons, and Mitchell Gold + Bob Williams, among others—that continued through 2024 and the start of 2025.
Big Lots filed Chapter 11 last year, had planned to sell itself to Nexus Capital Management, and ultimately was sold to discount retailer Variety Wholesalers Inc. when the Nexus deal fell through. Party City survived a 2023 bankruptcy filing, but last month began winding-down operations that saw 700 stores go dark. And earlier this month, the 800-store fabrics and crafts chain Joann filed its second Chapter 11 petition within a year, and is now hoping for a buyer to keep its business in operation.