Beyond’s $40 million investment in The Container Store may not go according to plan due to the latter’s inability to satisfy the agreed financing requirements.

In its latest update on the deal, Beyond said it has concerns regarding The Container Store’s ability to reach agreement with lenders on terms that would satisfy the financing requirements.

Under the purchase agreement signed on October 15, The Container Store needs to secure new financing on terms commercially acceptable to Beyond as a condition to closing. 

“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, executive chairman of Beyond.

“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,” he added.

Beyond will continue to evaluate any financing proposals The Container Store may provide. If the financing requirements are not met by January 31, either party may terminate the acquisition.