The Container Store applied Chapter 11 bankruptcy protection on Sunday to try to save the business and ensure future profitability.

The move had been anticipated by Wall Street analysts as the retailer’s financial struggles continued to grow. The Texas-based company with 103 stores in 34 states and the District of Columbia sells storage products and custom cabinets.

The Container Store said this does not mark the end of the retailer. The company said it filed for voluntary Chapter 11 protection in the bankruptcy court for the Southern District of Texas as it plans to “implement a recapitalization transaction to strengthen its financial position, drive growth initiatives and increase profitability in long term”.

At least 90% of the company’s lenders agreed to support its bankruptcy plan, which would provide the company with $40 million in new financing, help it reduce its debt by at least $45 million, and facilitate debt payments, as well as extending the time you have to pay off your remaining debts.

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The company said it will continue to operate its business as usual and provide products and services at home to customers “without interruption”. Additionally, its stores and website will “continue to operate as normal.” The company also said that all customer deposits and orders will be honored and delivered as normal.

However, a source close to the matter told FOX Business that the process “allows companies to renegotiate the terms of their leases to align their store footprint with market realities and business needs.” . If the company fails to “achieve significant rent reductions, they may be forced to close select locations,” the source said.

A container store on Santana Row in Silicon Valley, San Jose, California, January 3, 2020. (Smith Collection/Gado/Getty Images)

“The container store is here to stay,” CEO Satish Malhotra said, adding that the bankruptcy process will help the company advance its business and strengthen its capabilities.

“We are particularly excited about the future of our custom space offerings, which continue to demonstrate strength,” said Malhotra. “We intend to keep our workforce strong and we remain committed to providing an exceptional experience for our customers as we execute this recapitalization and for many years to come.”

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The retailer known for its organization solutions had quickly gained fame thanks to the success of The Netflix series “Tidying Up”, which was released in 2019.

Today, it has been struggling with a weaker housing market and an increasing availability of cheaper alternatives. Earlier this month, shares of The Container Store were halted on the New York Stock Exchange ready to remove stockwhich had fallen below the NYSE’s continuing listing standard. This rule requires listed companies to maintain an average global market capitalization of at least $15 million for 30 consecutive trading days.

Shopping carts at a container store in New York on November 4, 2013. (Jin Lee/Bloomberg via/Getty Images)

Eric Snyder, a partner at New York City-based Wilk Auslander LLP, previously told FOX Business that real estate market conditions and increased competition “made this brick-and-mortar company … an unnecessary purchase.”

The company doesn’t benefit from holiday sales because its products aren’t considered discretionary purchases, compounding its problems, according to Snyder.

“Because of this, in addition to the loss of a $40 million lifeline from Beyond, bankruptcy and a quick sale is the only option,” Snyder said. Beyond Inc., owner of Bed Bath & Beyond and Overstock.com, pulled out of a deal to invest $40 million in Container Store Group as part of a new partnership.

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Beyond originally planned to invest in the company and use a section within the Container Store’s real estate locations to showcase its assortment of kitchen, bath and bedroom items, which would be co-branded. But Beyond Inc.’s chief executive, Marcus Lemonis, said last month that the company was concerned that The Container Store could not reach an agreement with its lenders on terms that would meet the financial needs of the agreement.

Latham & Watkins LLP served as legal counsel to The Container Store. Investment bank Houlihan Lokey was its financial advisor. FTI Consulting was its financial and communications advisor, and A&G Realty acted as real estate advisor.