By Ben Glickman
The Container Store said it didn't expect a $40 million investment deal with Beyond to close after Beyond expressed concerns about the conditions of the deal being met.
The Container Store said in a regulatory filing early Thursday that because of recent developments, including a news release from Beyond released Wednesday, the Coppell, Texas, company doesn't expect the conditions of the funding deal to be satisfied or that the deal will be completed under the disclosed terms.
Shares of The Container Store fell 9.8% to $3.89 in premarket trading.
Beyond in its news release said that it has concerns about the company's ability to reach an agreement with lenders.
The investment by Beyond, structured as share-purchase agreement and initially announced last month, would have given Beyond shares of a new series of preferred stock and space on The Container Store's shelves to showcase Beyond's products.
The deal is contingent on The Container Store securing new financing terms with lenders.
The Container Store said that it was in advanced discussions with lenders under its existing term loan-credit agreement to provide additional financial support. The company remains focused on executing its strategic initiatives, it said.
Write to Ben Glickman at ben.glickman@wsj.com
(END) Dow Jones Newswires
November 21, 2024 09:23 ET (14:23 GMT)
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