Midvale, Utah – Beyond Inc.’s agreement to invest in The Container Store appears to be in trouble.
Late this afternoon, Beyond announced that if The Container Store fails to secure new financing on terms it deems commercially acceptable, the e-commerce company may pull the plug.
Beyond Inc. forged a financial partnership with The Container Store last month, under which Beyond agreed to a $40 million investment in the company. Once approved, the deal would give Beyond Inc. a 40% stake in the 103-store retail chain.
As part of that partnership, The Container Store was expected to roll out or convert an unnamed number of its brick & mortar locations to co-branded Bed Bath & Beyond/Container Store units.
The parties also agreed that The Container Store would secure new financing on terms acceptable to Beyond as a condition to closing the deal.
“While we continue to believe in The Container Store’s brand and business fundamentals, the proposed financing terms we have reviewed to date fall short of what we believe is necessary to complete the transaction,” said Marcus Lemonis, executive chairman of Beyond Inc.
Beyond will continue to evaluate any financing proposals The Container Store may provide, the company said. However, if the specialty retailer fails to satisfy Beyond’s requirements by Jan. 31, 2025, the online conglomerate is free to terminate the agreement.
See also:
- Container Store CEO looks ahead to Bed Bath & Beyond partnership
- Resurrected Bed Bath & Beyond stores likely to launch first on the East Coast