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The Container Store is back from bankruptcy.
The struggling home goods emerged from Chapter 11 bankruptcy on Tuesday, Yahoo Finance learned exclusively.
In a release, the company said it "achieved the objectives it set for this process" in late December. That includes refinancing its short-term debt, reducing "previous long-term debt obligations," gaining access to $40 million in new money financing, and "modifying its asset-backed lending facility to add $40 million in upsized capacity."
Throughout the process, the business operated as usual across stores, online, and in-home services. It was also able to "[meet] its obligations to vendors, employees and customers."
No employees were let go, but the company does plan to close two stores next month. The closings are separate from the bankruptcy process.
Formerly under the ticker TCSG, the company is now private after the restructuring process. For the quarter ended Sept. 28, 2024, The Container Store listed total liabilities of $836.4 million against $969 million in total assets.
CEO Satish Malhotra — a former Sephora executive who took the top job in 2021 — called this a "new chapter" for the 46-year-old company, adding that it has a "healthier balance sheet that positions the company for profitable growth."
It has been unprofitable for the past two fiscal years, with losses tallying about $10 million for the fiscal year ended Sept. 28, 2024.
The bankruptcy did not include the company’s Elfa home goods business in Sweden. The company operates 102 stores across 34 states.
But it couldn't keep up with competition from Walmart (WMT), Amazon (AMZN), and Target (TGT) as a frenzy of demand from shoppers renovating their homes during COVID-19 passed.
The company is among a string of retailers falling into bankruptcy, including Party City and Joann, which filed its second bankruptcy earlier this week. Big Lots also announced plans to close entirely at the end of last year.
In a note ahead of the Container Stores' last earnings results as a public company, JPMorgan analyst Christopher Horvers said its results were "plagued by continued macro headwinds delaying a return to growth for the category."
He added that the company "has yet to see green shoots" as consumers stocked up during COVID and said he expected "an increasingly promotional environment and event-driven consumer."
Now, the company has "renewed energy and excitement to deliver for our customers,” Malhotra said in a statement about plans to optimize the business and enhance its offerings and the customer experience.