By Arlenys Tabare
Dec 23, 2024, 12:57 PM EST
High inflation in recent years has taken its toll on some retail chains as consumers cut back on spending and This caused the sales of many stores to drop, leading them to declare bankruptcy. in addition to the debts carried over from the Covid-19 pandemic.
That’s one of the reasons why The Container Store, a retailer specializing in home storage and organization, recently announced its bankruptcy after years of losses. now filing for Chapter 11 bankruptcy protection.
Although the chain is going through a bankruptcy process, through a statement it expressed that its operations in stores and on its online sales platform will remain, Likewise, your customers’ orders and deposits for the items sold will be fulfilled.
The Container Store It has approximately more than 100 branches in the US., and is currently negotiating and requesting support from its shareholders to promote a reorganization plan over the next 35 days.
In this regard, Satish Malhotra, CEO of The Container Store mentioned that the company has arrived in the market to stay. “Our strategy is solid and we believe that the steps we are taking today will allow us to continue advancing our business, deepen customer relationships, expand our reach and strengthen our capabilities,” he said in the statement.
The Container Store has not been the only retail chain that has declared bankruptcy this year or that is going through a moment of readjustment of expenses, During 2024, approximately 45 companies in this sector declared bankruptcy, mainly due to the large debts carried over from the pandemic. and changes in spending by Americans pressured by high prices due to inflation.
Although consumer behavior increased sales in the last quarter of the year, inflation is still above what the Federal Reserve expected, causing many Americans to remain cautious regarding their discretionary spending.
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