We may see the end of The Container Store as it struggles under the current U.S. economic crisis, and files for bankruptcy.
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This marks yet another business, once a staple of the U.S., to file for Chapter 11 bankruptcy. The number of businesses having to take the measure seems to be growing by the day. Now, The Container Store has declared bankruptcy.
The home goods shop, known for its appearance on the hit U.S. show Tidying Up has a total of 102 stores around the U.S. Despite the bankruptcy, The Container Store doesn't plan on closing any just yet. Under Chapter 11 bankruptcy, they may not have to either, given the right management.
This kind of bankruptcy doesn't mean the end for a company. Instead, it simply means that The Container Store will be going into administration. Due to the struggling financials of The Container Store, professionals need to take the reigns. This keeps the doors open, keeps employees employed, and, if they have any, ensures stockholders maintain their value.
The Container Store Bankruptcy A Creeping Inevitability
For those in the loop, the eventual bankruptcy of The Container Store was a long time coming. Back in 2013, when the home goods store went public, its stock options were priced at an impressive $525 per share. However, as of December 19th, they had plummeted to $0.32. They have since been removed from the New York Stock Exchange for falling below the market cap.
The declaration of Chapter 11 Bankruptcy for The Container Store comes amid the U.S. population's collective belt-tightening. As the country continues to struggle financially, people have strayed away from home improvements. Rather than forking out for a new kitchen set, or renovation, essentials like food and fuel are taking priority.
Along with fewer people renovating their homes, comes a decrease in new home buyers and movers. A huge amount of revenue for goods companies like The Company Store comes from people making their new houses into homes. But, as rent increases along with house prices, more people are tied to the homes they are in. The Container Store relies on people moving house, and without it, they have been forced into bankruptcy.
