The Container Store Group has filed for voluntary Chapter 11 to implement a recapitalization transaction aimed at strengthening its financial position.

The company will operate its business as usual and continue to provide products and in-home services without disruption throughout this process. 

At least 90 per cent of the company’s term loan lenders have entered into a transaction support agreement to provide $40 million of new money financing, $45 million of deleveraging, and debt service relief.

The Container Store said the recapitalization will “substantially strengthen” its balance sheet and liquidity position to continue meeting its commitments to partners, vendors, and stakeholders.

“Our strategy is sound, and we believe the steps we are taking today will allow us to continue to advance our business, deepen customer relationships, expand our reach, and strengthen our capabilities,” said CEO and president Satish Malhotra.

“We intend to maintain our strong workforce and remain committed to delivering an exceptional experience for our customers while we execute this recapitalization and for many years to come,” Malhotra added.

The company expects to confirm the plan of reorganization within the next weeks. The Chapter 11 process does not include the Elfa business in Sweden, which continues to operate as normal.

In October, Beyond Inc signed an agreement to invest $40 million in The Container Store through an equity transaction. Beyond later expressed its concerns regarding The Container Store’s ability to reach an agreement with lenders on terms that would satisfy the financing requirements.