The Container Store is up for sale.

The 29-year-old storage and organization retailer will announce today that it has hired financial advisers to "explore strategic alternatives including a potential sale of the company."

The private-equity bug has bitten one of America's most successful specialty retailers and one that has prided itself and been recognized repeatedly for being among the best places to work.

Major U.S. chains from Dallas-based luxury leader Neiman Marcus to Irving-based arts-and-crafts chain Michaels Stores Inc. have fetched top dollar from private investors who see an opportunity to grow a retail chain or turn it around.

Chairman Garrett Boone and chief executive Kip Tindell said Friday that they've been struggling for years to figure out a way to release the equity in the business they founded in 1978 but preserve its unique culture, retain the management team and position the company for growth.

"We've always felt this was a wonderful company. And we wanted to make sure that we didn't screw it up by what we did with the equity," said Mr. Tindell, who was named co-chairman by the board during a meeting Friday.

"We've talked about this for many years, and Garrett and I realized last summer that at some point we had to pick a path," he added.

It has hired J.P. Morgan as its financial adviser and Cravath, Swaine & Moore LLP as legal adviser.

Mr. Boone said that at one time the families believed they would sell the company bit by bit but now realize that by selling the company to one large majority investor, they can control the chain's destiny in the long term.

"We realize conditions are right to do this now," Mr. Boone said. "We can maximize the market value of this extraordinarily regarded company, and we feel we can leverage that to achieve what we want to do, which is have maximum management participation."

Mr. Boone, 63, Mr. Tindell, 54, chief merchandising officer Sharon Tindell, 51, and president Melissa Reiff, 52, all said Friday that they want to remain in their positions if the company is sold.

"Our success is built on a unique culture, concept and brand – and we're looking for a transaction that will be just as groundbreaking, one that will allow us to run the business exactly as we do today," Mr. Tindell said.

The Boone and Tindell families no longer own a majority of the company, which is expected to have sales of more than $500 million in its 2006 fiscal year, which ends this month.

In April 2005, Mr. Boone and Mr. Tindell sold a 10 percent interest to Fort Worth billionaire Robert Bass, Dallas investor Mike Terry of M. Terry Enterprises Inc. and Bruce Hunt, president of Dallas-based Petro-Hunt LLC.

A few years prior, the company sold another stake to an undisclosed Japanese investor. Two years ago, several top executives were also awarded stock, and about 120 employees have been granted stock options.

Employees learned about the decision in a series of meetings at headquarters and via conference call Friday afternoon.

Mr. Tindell said employees were assured that any transaction will preserve the workplace culture that they value.

He also said employees understood that "we'll never know the top of market value of this company unless we try to sell a majority stake."

Asked if there will be more pressure on the company to generate higher profits under new owners, Mr. Boone said, "That's up to us to negotiate. We won't let that happen. We're not desperate,, and if it's not right we won't do it."

They pointed to Chicago-based Crate & Barrel as an example where founder Gordon Segal remains at the head of the company after selling a controlling stake to a large German mail-order company in 1998.

The two chains share best practices and often work together to locate in similar shopping centers. Mr. Tindell said "we'll likely talk to Gordon about this process."

Besides buying the leader in a growing merchandise category, the new owners will acquire a corporate culture that is studied by other companies and that has landed it on Fortune magazine's list of best places to work for the last eight years.

It was one of the first chains to learn the value of hiring some of its best customers to work in its stores. An early adopter of casual dress, management has operated under the credo that a happy workforce will translate into happy customers.

Perks include free yoga classes three times a week, on-site dry cleaning and car washes and the full use of the postal and packaging center. The family-friendly work environment includes a subsidized cafeteria and chair massages once a week.

Container Store sales have grown an average of 15 percent to 20 percent a year since it started in Dallas in 1978. Management said it is "very profitable, achieving profit levels at the top of the industry." As a private company, it doesn't have to disclose results.

Its slow pace of expansion – 38 stores in 29 years – leaves it with plenty of places to grow. Next month, the first Container Store opens in St. Louis, and its second store in the Denver market opens in the fall.

The chain has only one store in Florida and none in the growing retail markets of Phoenix, Las Vegas or Charlotte, N.C. It's on every real estate developer's "A" list of prospective tenants. It's planning three stores this year and as many as six next year.

Growth has accelerated since its first Manhattan store opened in late 2003. The exposure has been huge, not only to Wall Street investors, but also from how-to magazine editors and television producers.

The company also owns one of its best-selling lines, Elfa shelving products, which it acquired in 1999. Elfa International of Sweden makes ventilated wire shelving and drawer storage systems. Elfa is growing in Europe and expanding into Russia. It also continues to develop product lines with the Container Store.

Business: Privately held chain of organizational product stores.

Headquarters: Coppell

History: Founded in 1978 in Dallas by Kip Tindell, Garrett Boone and John Mullen

Top executives: Mr. Boone, chairman; Mr. Tindell, chief executive; Sharon Tindell, chief merchandising officer; Melissa Reiff, president

Revenue: An estimated $425 million in 2005; a projected $500 million-plus in 2006

Employees as of March: 4,531; 876 in Dallas-Fort Worth

Ranking: No. 4 in Fortune magazine's 2007 list of best places to work

Stores: 38 in 17 markets, including nine in Texas

SOURCES: Container Store; Dallas Morning News research