8 Companies You Use, That Will Close in 2017-The Container Store



The Container Store is among a group of companies that has had a long rise that may be met by a quick fall. Kip Tindell founded the company way back in 1978 and gradually built the business through 2013 when it finally became public with shares doubling in value shortly after. Unfortunately, sales momentum has slowed ever since 2010 and flattening out in 2014 and 2015. Tindell has since stepped down as CEO amid growing competition from other stores such as Wal-Mart and IKEA and e-retailers like Amazon.

It takes patience from the investor when a company is trying to turn itself around, but investors seem to be losing that patience and more after the financial fiscal reports. They are starting to lose hope of ever seeing The Container Store complete a successful restructuring of the business. Investors were optimistic so the net loss came as a shock while a decline in sales led many of the investors to throwing in the towel which then led to shares plummeting.

The Container Store has been struggling to get organized for some time leading to believe that the shock of the ugly bottom line should not have come as a surprise. By looking closer at the company’s results, challenges that the Container Store continues to face are red flagged. Stores that compare to the business were only up half of a percent year after year meaning there was minimal upward momentum in performance. Retail sales were up due to the opening of new stores yet The Container Store continues to argue that 2015 was an investment year in order to justify the losses.

The company has said that it has spent a mere pennies per share on key strategic initiatives that are designed to position it for greater success down the road. They said that they expect to see a large impact on that investment made in the coming years. Unfortunately, investors do not share in The Container Store’s optimism as they continue to lose patience with the retailer’s pace of its turnaround. Furthermore, they are becoming more and more uncertain whether they can get things fixed soon enough.