Beyond, Inc. issued an update on its agreement to acquire a minority stake in The Container Store, warning the deal might fall through if The Container Store can’t secure new financing.
The pending $40 million investment transaction might collapse, Beyond stated, because The Container Store has not secured new financing on acceptable terms as stipulated in the agreement. Beyond pointed the closing of the deal was predicated on The Container Store establishing a sustainable capital structure. Under the agreement, Beyond has a right to determine the adequacy of The Container Store’s financing arrangements.
Beyond maintained it would continue to evaluate any financing proposals The Container Store might offer to satisfy the agreement terms. However, if The Container Store is unable to obtain commercially acceptable financing by January 31, 2025, then either party might terminate the purchase agreement, Beyond noted.
“When we signed the purchase agreement, we were optimistic that The Container Store would be able to secure adequate financing to support the business going forward,” said Marcus Lemonis, Beyond executive chairman. “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. As careful stewards of our shareholders’ capital, we must remain steadfast in ensuring that the terms of any financing package work for both The Container Store and Beyond.”
