The Container Store files for Chapter 11 bankruptcy
COPPELL, Texas - Coppell-based company The Container Store has filed for bankruptcy.
What we know: The company filed for Chapter 11 bankruptcy protection in a Southern District of Texas court on Sunday.
Court documents show that The Container Store has about $230 million in debt and just $11.8 million cash on hand. The company says they expect to receive $40 million in new financing.
The reorganization plan takes 35 days.
The chain owns 102 locations, which are expected to stay open during the bankruptcy process.
What They're Saying: "The Container Store is here to stay. 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," said Satish Malhotra, Chief Executive Officer and President of The Container Store. "We intend to maintain our strong workforce and remain committed to delivering an exceptional experience for our customers while we execute this recapitalization and for many years to come."
What's Next: The Container store says at the end of the process the new lenders will be the owner of the business.
They expect The Container Store to be a private company.