CONTAINER STORE ANNOUNCING POISON PILL TODAY - STOCK DOWN 98% (all time)
Short Takes
The Container Store, a retailer based in Dallas, Texas, has adopted a limited duration, stockholder rights plan, commonly known as a poison pill.
This plan will take effect immediately and remain in place until October 2025. The company has implemented this measure in response to a single shareholder building up a substantial position in the company's stock.
According to a report in The Dallas Morning News, Amit Agarwal (also known as Amit Mohan Agarwal), a resident of Tampa, Florida, has accumulated an 18% stake in the retailer, equivalent to 621,400 shares. Private equity firm Leonard Green Partners currently holds a majority stake in The Container Store.
Seeking Alpha reported that under the rights plan, one preferred stock purchase right will be distributed for each share of common stock held by shareholders as of October 23.
These rights will become exercisable if a person or entity acquires at least 20% of the company's common stock, known as the "triggering percentage." This will then allow rights holders to purchase additional shares at a 50% discount.
The Container Store's stock (ticker symbol: TCS) reached a high of $706 on December 30, 2013. However, the stock is currently trading at $8.95, a 98% decrease from its peak. The Container Store's shares are listed on the New York Stock Exchange (NYSE).
The company is scheduled to report its next financial results on October 29, 2024.