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The Container Store struggling, may be sold as it receives NYSE delisting notice

The Coppell-based chain of 102 stores has been cutting costs and expanding into general merchandise.

The Container Store, founded in Dallas as the original storage and organization store in 1978, may be sold after trying for years to grow the business.

The Coppell-based retailer hasn’t posted a full-year profit since 2021 when sales exceeded $1 billion for the first time. Sales plummeted in the past year to $847.8 million.

The chain of 102 stores said its board has initiated a formal review process to evaluate strategic alternatives, which generally includes the possibility of a sale of the company, saying it doesn’t believe “the current market value is reflective of its intrinsic value.”


The retailer also said Tuesday that it received a notice from the New York Stock Exchange saying it was no longer compliant with continued listing rules.

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The Coppell-based retailer’s stock price hasn’t maintained an average closing price of at least $1 over the past consecutive 30-day trading period. The retailer said in a filing that it’s considering all its options including a reverse stock split.

The Container Store stock will continue to trade on the NYSE during a six-month cure period. The stock closed at 88 cents a share on Monday, giving the retailer a market capitalization of $46.5 million. The stock has been trading at the low end of a 52-week trading range of 83 cents to $3.71 a share.


“The Container Store’s board and management team are committed to maximizing value for our stakeholders, and to that end, we have commenced a comprehensive process to review potential strategic alternatives for the business,” said Lisa Klinger, chairperson. “We have established the Transaction Committee to help oversee the process to ensure that we are maximizing both the potential of the business and returns for stakeholders.”

The Container Store has hired J.P. Morgan Securities, as its financial advisor, and Latham & Watkins for legal assistance, and has not put a deadline on the strategic review process.


Competition has increased in recent years not only from online retail but also from storage and organization sections in Walmart, Target and even supermarkets.

The retailer’s sales have been on a downward trajectory, and on Tuesday it posted a fiscal fourth-quarter sales decline of 20.7% to $206.04 million in the period that ended March 30. Its net loss of $61.37 million was an improvement from $189.25 million in the same quarter a year ago.

For the year, The Container Store posted a loss of $103.3 million on sales of $847.8 million, compared with a loss of $158.9 million on sales of $1.05 billion the prior year. The company added five new stores in the past year.

CEO Satish Malhotra said the year ended with “continued pressure on our general merchandise assortment” but the custom closet business had stronger results.

He thanked employees across the business for “exercising strong cost discipline resulting in positive free cash flow for the fiscal year, and in delivering superior customer service.”

The challenges with general merchandise are expected to continue, he said. Malhorta has been CEO since February 2021.

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