Management at Beyond, Inc., the parent company of Bed Bath & Beyond and Overstock, is doubling down on brick-and-mortar retail despite the challenges facing the sector. This week, the company announced a $40 million preferred equity investment in The Container Store, which includes a licensing agreement.

The deal is contingent upon The Container Store refinancing its credit facilities. It will grant Beyond 40,000 shares of convertible preferred equity, which can be converted to common equity at a price of $17.25 per share. If fully converted, Beyond would own 40% of The Container Store's common equity.

As part of the agreement, Bed Bath & Beyond will begin marketing its branded products in The Container Store locations. Additionally, The Container Store will secure a licensing deal to feature its products on Beyond's e-commerce platform and in retail locations.