Container Store receives $40M investment from Beyond

Container Store (TCS) and Beyond (BYON) announced that the companies have entered into a strategic partnership with the objective to improve customer experience. The companies intend for the partnership to position Container Store to return to profitable comparable store growth over time by utilizing Beyond’s intellectual property, customer data, network of brands, and affiliate relationships. The companies expect key aspects of the partnership to include: Container Store’s real estate locations and utilizing the Bed Bath & Beyond brand to launch appropriately sized spaces that showcase the Bed Bath & Beyond assortment for kitchen, bath and bedroom, which will be co-branded. Through this collaboration, the companies expect to drive increased traffic for Container Store’s core assortment and its high-margin, solution-driven Custom Spaces services business. Beyond will offer a global loyalty program, multiple payment solutions and ancillary insurance and protection products through Container Store brick-and-mortar locations and website in an effort to capitalize on the whitespace opportunity for Custom Spaces and increase conversion of design leads to drive growth through the vertically integrated model. Beyond to integrate Container Store’s proprietary Custom Spaces offering, including its Elfa and Preston product lines, across Beyond’s portfolio of e-commerce banners as well as other ventures where Bed Bath & Beyond future licensed stores exist globally. Container Store will join Beyond’s data platform and Beyond to assist with expanded and renewed e-commerce platforms and strategies. As part of the terms of the collaboration, Beyond has agreed to invest $40M in The Container Store through a preferred equity transaction subject to certain terms and conditions, including an amendment or refinancing of The Container Store’s credit facilities in a manner commercially acceptable to Beyond.