(Bloomberg) -- Beyond Inc. has concerns about The Container Store Group Inc.’s ability to satisfy certain new financing requirements needed to complete its $40 million investment in the company, according to a statement on Wednesday. 

The Container Store agreed in October to sell a preferred equity stake as part of a larger agreement with Beyond, which owns retail brands including Bed Bath & Beyond, Overstock and Zulily. The transaction required The Container Store to amend or refinance its credit facilities, Bloomberg previously reported.

Financing proposals to date “fall short of what we believe is necessary to complete the transaction,” Beyond’s executive chairman, Marcus Lemonis, said in the statement, adding the firm still believes in The Container Store’s “brand and business fundamentals.”

Beyond’s doubt over its investment is a new blow to The Container Store, which has struggled with declining revenues and a significant debt burden. The company hired advisers earlier this year to explore strategic alternatives. 

Beyond said it would continue to evaluate any financial proposals from The Container Store, but absent acceptable financing by Jan. 31, either party could end the agreement, according to the statement.

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