Container Store Files for Bankruptcy

Texas-based retailer plans to complete a reorganization plan within 35 days

- BEN OTTO

The Container Store has filed for bankruptcy as it contends with quarterly losses and rising debt levels that have shaken investor confidence and led to its imminent delisting.

The specialty retail chain said late Sunday that it had filed for chapter 11 bankruptcy protection in a Texas district court, with plans to complete a reorganization plan within 35 days.

The Coppell, Texas-based retailer said at least 90% of its term-loan lenders had agreed to support a deal that will give it $40 million in new money financing, at least $45 million in deleveraging, “substantial” debt service relief and what it described as “material maturity runway.”