The Container Store Files for Bankruptcy—Are Closings Afoot?
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When I was living in teeny-tiny New York City apartments a decade ago, a trip to The Container Store was a special event—one that I considered a major step up from going to Bed Bath & Beyond with a stack of 20-percent off coupons. The storage bins came in all different colors, the Elfa shelves actually fit my space, and there was always something I didn’t realize I “needed.” A similar sentiment is likely what propelled the retailer in the early- to mid-2000s. Then came the pandemic, when everyone was home 24/7 and undertaking remodeling and reorganization projects. But times have changed, and The Container Store has felt it, leading the company to file for Chapter 11 Bankruptcy on Dec. 22.
RELATED: Walgreens Is Closing More Stores—Here’s Where and When .
The Container Store fell on hard times post-pandemic.
In 2021, coming off the height of the COVID-19 pandemic, The Container Store reached $1 billion in net sales, and its stock climbed to $18 a share, according to the New York Post .
However, by this past September, the 46-year-old company had accrued $232 million in debt, up 34 percent from the same time in 2023.
In an earnings call on Oct. 29 , The Container Store reported that its net sales were down 10.5 percent from the same time last year, while comparable store sales were down 12.5 percent. Total net losses were $16.1 million.
“We have faced challenges due to softening demand and increased price sensitivity affecting our financial performance,” chief financial officer Jeff Miller said during the call .
However, as The Washington Post reported, “Earlier this month, the New York Stock Exchange suspended trading of the Container Store after its stock fell below requirements to maintain a market capitalization of $15 million for 30 consecutive days of trading.”
“Its shares dropped Monday, trading around just 25 cents as investors reacted to the news. Its stock is down 99 percent year-to-date,” the news outlet continued.
The Container Store files for bankruptcy.
On Dec. 22, The Container Store filed for Chapter 11 Bankruptcy in the U.S. Bankruptcy Court for the Southern District of Texas, according to a press release .
At least 90 percent of the loan lenders have agreed to $40 million in new financing. Therefore, the company plans to “confirm a plan of reorganization” within 35 days and emerge from bankruptcy shortly thereafter.
The retailer’s popular Sweden-based Elfa brand is not included in the bankruptcy.
RELATED: CVS Is Closing More Locations, Starting Next Week—Here’s Where .
Will The Container Store close locations?
As of now, The Container Store has no plans to close any of its 102 locations in 34 states. The company has created a special website to assure customers that nothing will change during the bankruptcy, and it has also said there will be no layoffs.
“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 , CEO and President of The Container Store. “We are particularly excited about the future of our custom space offerings, which continue to demonstrate strength.”
However, according to Yahoo! Finance , sources told them that store closures could be possible in the future as “Chapter 11 allows companies to ‘renegotiate the terms of their leases to align their store footprint with market realities and business needs.’” They added, “if they do not achieve meaningful rent reductions, they may be forced to close a select few locations.”
Moreover, in an Oct. 30 filing with the U.S. Securities and Exchange Commission (SEC), The Container Store said there was “substantial doubt regarding the Company’s ability to continue” in light of a “persistently challenging retail environment, including reduced consumer spending in the storage and organization category and increased price sensitivity.”
A partnership with Bed Bath & Beyond is likely off the table.
On Oct. 15, The Container Store announced a $40 million strategic partnership with Beyond, Inc., the parent company of Bed Bath & Beyond, Overstock, and Zulily.
However, Yahoo! Finance reports that sources say the deal has now fallen through due to the bankruptcy.
RELATED: Bed Bath & Beyond Will Open New Stores—Here’s What to Expect .
Store closings are up significantly.
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The Container Store is not the only retailer struggling. Overall U.S. store closings are up 69 percent in 2024, according to data provided to Scripps News by Coresight.
Just last week, Party City announced it would close all of its roughly 800 stores after filing for bankruptcy in 2023.
On the same day, Big Lots announced that it was commencing going-out-of-business sales at its roughly 900 remaining locations after a previously planned asset sale fell through—and its future remains uncertain.
CVS Is Closing More Locations, Starting Next Week—Here’s Where
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Drugstore pharmacies like Walgreens and CVS are struggling to stay afloat. Next month, a total of eight Walgreens locations will close indefinitely as part of the company’s “ footprint optimization program .” Meanwhile, CVS is on track to close 300 stores by the end of the year—that will make for a total of 900 closures since spring 2022. So far, in 2024, CVS has shut down numerous distribution centers, consolidated its partnership with Target , and let go of several MinuteClinic locations. In the weeks leading up to 2025, CVS has additional plans in store. See if your neighborhood CVS will be impacted here.
RELATED: Big Lots Is No Longer Closing 15 Stores—Here’s Why and Where .
CVS will no longer operate MinuteClinics in Utah.
CVS is taking drastic measures to reduce its footprint in Utah. As of Dec. 7, the chain has permanently closed all of its MinuteClinic locations in the Beehive State, reports The Salt Lake Tribune . This includes the MinuteClinics located in Highland, Ogden, and West Jordan.
MinuteClinics are staffed by nurses and physician assistants who provide vaccines, COVID-19 tests, sports physicals, STD testing, and health screenings for things like blood pressure monitoring. They operate autonomously from the store’s pharmacy department
“We regularly evaluate MinuteClinic’s footprint to ensure it meets the demands of our patients and aligns with our health care delivery strategy,” CVS said in a statement to The Tribune . “As a result, we made the difficult decision to close our three MinuteClinic locations in Utah by December 7 to help support future growth and design in the next evolution of community health destinations.”
RELATED: Dollar Tree May Raise Prices in the New Year, CEO Says .
One store is closing in Plainfield, Illinois.
A southwest suburb of Chicago will be one CVS short beginning Dec. 17. The pharmacy at 11840 S. Route 59 will shutter its doors for good next Tuesday, reports Plainfield Patch . Only two CVS locations remain in the area. CVS spokesperson Amy Thubault said it comes down to having “the right kinds of stores and the right number of stores in the right locations.”
“Store closure decisions are based on several factors, including population shifts, consumer buying patterns, store and pharmacy density, pharmacy care access, and community health needs,” she told the town publication.
Two East Coast locations are closing.
Washington D.C. and Maryland have also been impacted by the recent wave of CVS Pharmacy closures. The location between 19th and Pennsylvania Avenue NW, near George Washington University, will close sometime this month, according to the local blog PoPville .
And if you travel 23 miles northeast, you’ll find the CVS store located inside the Bowie Plaza shopping center is also gone. They went out of business earlier this month. Prescription records and fulfillment requests will be moved to another neighborhood CVS Pharmacy at 6001 High Bridge Road.
