- The CEO of The Container Store is stepping down weeks after the company exited bankruptcy.
- In a memo obtained by BI, the board told employees Wednesday that chairman Joe Bines would lead a new “Office of the CEO.”
- After a pandemic bump, sales have struggled and the company previously disclosed $230 million in debt.
The Container Store’s CEO, Satish Malhotra, is leaving the company weeks after it exited bankruptcy, according to internal communications viewed by Business Insider.
Malhotra’s exit is effective immediately as he moves on to “pursue other opportunities,” the company said in a memo to employees.
Malhotra joined the housewares retailer in 2021 after more than 20 years with Sephora, where he was the chief revenue officer and the chief operating officer.
The Container Store’s board of directors told employees on Wednesday that it is forming the Office of the CEO, which would be led by board chairman Joe Bines and include chief transformation officer Martin Schumacher. Employees will report to the same managers, while Malhotra’s direct reports will work with the Office of the CEO.
Wednesday’s memo said that the company is “stronger and healthier” after its restructuring and is ready to “recapture a dominant position.”
Neither the company nor Malhotra responded to Business Insider’s requests for comment. The Dallas Morning News first reported the changes.
Sales at The Container Store, which sells home organization supplies, saw a pandemic bump but struggled in subsequent years as US retail spending slowed. The company disclosed $230 million in debt in its bankruptcy filings in December.
In January, a US bankruptcy judge approved a restructuring agreement that allowed the company to cut $88 million in debt and go private under the ownership of Golub Capital and Glendon Capital Management.
“With our restructuring process now behind us, we have renewed energy and excitement to deliver for our customers,” Malhotra said at the time.
Prior to the bankruptcy filings, the company announced a $40 million deal with former rival Bed Bath and Beyond, but that ultimately fell through.
The Texas-based company has around 100 physical stores in the US and an online presence.
