After a month in Chapter 11 bankruptcy protection, The Container Store Group announced the company has completed its financial restructuring process and emerged from court supervision as a private company.
The United States Bankruptcy Court for the Southern District of Texas confirmed the company’s plan of reorganization on January 24. The plan includes refinancing short-term debt, significantly reducing previous long-term obligations, accessing $40 million in new financing and modifying its asset-backed lending facility to add $40 million in upsized capacity.
A group of its lenders now own The Container Store, which maintained their support and allowed it to emerge from bankruptcy with a cleaner balance sheet that will give it a chance to pursue growth initiatives. Recent moves by the company include the creation of a smaller store prototype developed to be more efficient than traditional stores. According to the Reuters news service, Golub Capital and Glendon Capital Management led the lenders in taking ownership of the company.
The bankruptcy filing ended work on a deal for Beyond to invest in and establish joint operations with The Container Store.
“This is a new chapter in our journey as a healthier company well positioned to drive strategic growth initiatives forward,” said Satish Malhotra, president and CEO of The Container Store. “With our restructuring process now behind us, we have renewed energy and excitement to deliver for our customers. We are focused on optimizing our business, enhancing our portfolio of organizing solutions and services, and continuously improving the customer experience. I am grateful to our employees and vendor partners for their dedication throughout this process, to our valued customers for their support, and to our new owners for their belief in our business.”
