Two weeks after its stock was suspended from the New York Stock Exchange (NYSE), The Container Store has become the latest embattled retailer to file for Chapter 11 bankruptcy protection. Heres the latest update and what you need to know:Whats going on?Texas-based The Container Store Group, the specialty retailers parent company, announced over the weekend that it is seeking to improve its financial picture through a recapitalization transaction, which it says at least 90% of its lenders have signed on to support. The company expects to get $40 million in new funding through the agreement, in addition to $45 million in debt reduction, all in the hopes of strengthening its balance sheet.As part of the process, the company has voluntarily filed for Chapter 11 protection in the bankruptcy courts. The Container Store expects the process will take about 35 days, during which time it will undergo a reorganization. Why is The Container Store filing for bankruptcy? This move is not a surprise. The company has been in a precarious financial position for quite some time, reporting a net loss of $30.8 million during the 26 weeks ended September 28, 2024, and a net loss of $35.5 million during the same period a year earlier.Amid a sagging share price in May, The Container Store suspended its financial guidance and launched a strategic review of its finances with help from J.P. Morgan Securities, saying it would explore alternatives to the public markets. And earlier this month, the NYSE said it would delist The Container Store stock (NYSE: TCS) from the exchange for failing to meet its minimum required market cap.The Container Store says it will be a private company once it emerges from bankruptcy.Will The Container Store close any locations?So far, the company hasnt announced any store closures as part of the Chapter 11 process and, in fact, The Container Store insists that none of this will have any impact on in-store services or online operations.The Container Store is here to stay, CEO Satish Malhotra said in a statement. 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.Its also worth noting that The Container Stores physical footprint hasnt changed all that much in at least the past year. As of September, it said it had 103 locations nationwide, compared to 98 locations in September 2023.This is in contrast to many struggling retailers that have sought to significantly reduce their physical presence this year with waves of store closures, from department store chains like Macys to major pharmacies like Walgreens.Why does this sound familiar? Retail bankruptcies have been in the news a lot lately. Just last week, discount chain Big Lots announced that it was going out of business after filing for bankruptcy protection earlier this year. And over the weekend, Party City abruptly announced that it will wind down operations and file for Chapter 11 bankruptcy for a second time.But unlike some of those more dramatic examples, The Container Store maintains that it will be poised for future success once it wades through the bankruptcy process. How will this impact The Container Store Employees? According to the company, employees should see no change in [their] daily work, responsibilities, or reporting structure because of this announcement. It further stated that employees should feel confident that their paychecks, benefits, and retirement plans will not be impacted.