In the cutthroat world of retail, another retailer has filed for Chapter 11 bankruptcy protection.
The Container Store, founded in 1978 as a store devoted solely to storage and organizational products, filed for bankruptcy a few days before Christmas, according to a company press release issued on Dec. 22, 2024.
The company said it plans to keep all 102 stores open, its online operations and in-home services intact, and pay all vendors while it seeks $40 million in new money from term loan lenders to right its finances, according to the press release.
The company expects to confirm a plan of reorganization within 35 days of the bankruptcy filing or by the end of this month, per the release.
The plan includes keeping The Container Store at Cherry Hill Mall in South Jersey open, as well as the one at King of Prussia Mall in Pennsylvania.
“The Container Store is here to stay,” said company CEO and President Satish Malhotra in the same Dec. 22, 2024 release. “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.”
When contacted Thursday, Jan. 9, The Container Store, headquartered in Coppell, Texas, did not immediately respond for further comment.
Besides Cherry Hill Mall, New Jersey has Container Stores in Bridgewater, Livingston, Paramus, and Princeton.
The Container Store at King of Prussia Mall (owned and managed by Simon Property Group) and the store at The Block Northway shopping mall in Pittsburgh make up the two in Pennsylvania.
Cherry Hill Mall, owned by Philadelphia-based PREIT, is considered the premiere shopping mall in South Jersey based on annual revenue, retail square footage, and foot traffic.
A PREIT representative said while the company can’t speak on behalf of The Container Store, Cherry Hill Mall continues to change and evolve with consumer preferences to remain a top draw.
“While PREIT does not comment on speculation regarding tenant operations, Cherry Hill Mall has a strong track record of introducing new and exciting brands to the region,” said PREIT in an emailed statement to Paradise Media. “Noteworthy recent additions include Alo Yoga, Kendra Scott, Columbia Sportswear, and Signature Workspace, with new tenants on the way, including Dry Goods and Rowan.
“This continuous evolution of the tenant mix ensures that Cherry Hill Mall remains a premier shopping destination, committed to offering fresh and diverse experiences to our valued customers,” said the statement.
The Container Store may have dodged a bullet – at least for now.
On Thursday, Jan. 9, Macy’s Inc. announced it was shuttering the Macy’s store at the iconic Wanamaker Building on 1300 Market Street in Center City, Philadelphia. In total, 66 Macy’s nationwide will be closing.
On the same day, Kohl’s, a Wisconsin-based retail department store chain, announced it plans to close 27 stores in 2025, 10 of them in California.
Retail analysts attribute the closures to fierce competition, lingering inflationary concerns, and online shopping, which continue to damage the industry.
The number of retail bankruptcy filings doubled last year from 2023, according to a recent CoreSight report.
Nearly 50 retailers filed for bankruptcy protection in 2024, including The Container Store, compared with 25 for all of 2023, according to the report.
