The container store files for bankruptcy. Here’s what will happen to his business.

The Container Store announced late Sunday that it was filing for Chapter 11 bankruptcy protection after years of losses and declining sales.

The retailer, known for selling storage and organization products, said its brick-and-mortar and online stores will remain open during the bankruptcy process. Customer deposits and orders will continue to be honored. The Container Store has more than 100 locations across the United States

The Container Store’s woes come amid a difficult year for some brick-and-mortar retailers, which have seen store closures Great this year almost 70%. As of November, about 45 retailers have filed for bankruptcy protection in 2024, compared to 25 retail bankruptcies in all of 2023, according to a recent CoreSight report.

Some retailers are struggling to attract inflation-weary shoppers who are spending less money or becoming pickier when searching for deals and bargains. The Container Store posted losses in each of the last two fiscal years, while sales fell about 23% during that period.

The company said Sunday that it expects to submit a restructuring plan within 35 days and emerge from bankruptcy protection soon after.

“The Container Store is here to stay. Our strategy is sound and we believe the steps we are taking today will allow us to further advance our business, deepen customer relationships, expand our reach and strengthen our capabilities,” The Container Store CEO said Satish Malhotra in the statement.

The Elfa business in Sweden is not affected by the bankruptcy, the statement said.