Container Store jumps on investment from Bed Bath & Beyond owner

Neighborhood Intelligence

16/10/2024 15:07

(Updates)
    ** Shares of specialty retailer Container Store Group
 TCS.N  surge as much as 27% to $13.60 in early trade
    ** Company after market close on Tuesday said Bed Bath &
Beyond owner Beyond  BYON.N  agreed to invest $40 mln through
preferred equity transaction
    ** TCS shares up 16% at $12.41, BYON up 1.5% at $10.49
    ** Deal would result in ownership of ~40% of TCS stock by
Beyond
    ** Companies expect to drive higher traffic for TCS's core
assortment by co-branding Bed Bath & Beyond products for
kitchen, bath and bedroom
    ** The preferred equity investment helps to financially
stabilize TCS amid a challenging backdrop - Jefferies
    ** As of last close, TCS stock down ~69% YTD

 (Reporting by Savyata Mishra in Bengaluru)
 ((Savyata.Mishra@thomsonreuters.com))