The Container Store on verge of possible bankruptcy filing as housing market flails: report

The Container Store may be the next home goods chain to file for bankruptcy as a weak housing market and inflated prices hurt sales, according to a report.The Coppell, Texas-based chain enjoyed a pandemic-induced boost in 2020 and 2021 when consumers, stuck inside their homes, took inspiration from Marie Kondo’s Netflix hit “Tidying Up” and de-cluttered their spaces in a frenzy.But a weak housing market has resulted in fewer people moving houses – resulting in smaller sales of bins and dividers.American consumers have also been hit hard by sticky inflation and have pulled back on discretionary spending, including house renovations and new furniture.The Container Store – which was founded in 1978 and has grown to around 100 US locations – is frequently ranked as one of the most financially distressed companies in the retail industry by credit rating agencies, according to a CNN report.There’s a “high probability” the Container Store will file for bankruptcy next year – joining home goods retailers like Big Lots and LL Flooring, which have already filed for Chapter 11 protections this year, Tim Hynes, the global head of credit research at Debtwire, told CNN.“I don’t see any dramatic increase in holiday sales that will change the situation,” Hynes said.

“They are already pretty far down the line.”The Container Store did not immediately respond to a request for comment.More stores are expected to close this year than any year since the pandemic, according to Coresight Research.In May, the retailer showed signs of financial trouble when it suspended its earnings outlook and said it would conduct a strategic review of its business to find ways to improve.In the latest quarter ended Sept.28, The Container Stores posted a sales decline of 10.5% and losses of $30.8 million.The company was set to receive a Hail Mary in the form of a $40 million deal with Beyond, the owner of Bed Bath & Beyond and Overstock.com, to stock Bed Bath & Beyon...