NEW YORK (AP) — The Container Store has filed for bankruptcy protection as the storage and organizational goods retailer with roots dating back to 1978 grapples with mounting losses and cash flow shortages.
The Texas company has faced increasing competition from retailers like Target and Walmart at the same time that demand for its goods are under strain in a rough housing market, where soaring prices and elevated mortgage rates have stunted sales.
The company said Sunday that it had filed for bankruptcy protection in Texas. The filing arrives two weeks after the trading of company shares were suspended by the New York Stock Exchange. The Container Store Group Inc. failed to maintain an average market capitalization of at least $15 million in accordance with NYSE rules.
Last month, The Container Store said that it was in advanced discussions with lenders to provide additional capital as it aimed to turn around sagging earnings and sales, according to a regulatory filing.
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