Container Store adopts limited duration stockholder rights plan

Container Store announced that it has adopted a limited duration stockholder rights plan, which is effective immediately and is scheduled to expire on October 7, 2025. “The Company’s Board of Directors adopted the rights plan in response to the rapid and significant accumulation of the Company’s common stock by a single stockholder and to protect value for all of the Company’s stockholders. The limited-duration rights plan is designed to promote the fair and equal treatment of all stockholders of the Company, ensure that the Board remains in the best position to discharge its fiduciary duties to the Company and its stockholders, guard against any stockholder obtaining undue influence over the Company through open market accumulations and provide all stockholders an opportunity to maximize the value of their investment in the Company. The rights plan is similar to plans adopted by other publicly traded companies. Under the rights plan, one preferred stock purchase right will be distributed for each share of common stock held by shareholders of record on October 23, 2024. The rights will become exercisable if a person or group acquires 20% or more of the Company’s common stock (including shares that are synthetically owned pursuant to derivative transactions or ownership of derivative securities). In such event, each right will entitle its holder (other than the person or group triggering the rights plan, whose rights will become void and will not be exercisable) to purchase, at the then-current exercise price, additional shares of the Company’s common stock at a 50% discount. Except as provided in the rights plan, the Board is entitled to redeem the rights at $0.01 per right. The rights will expire on October 7, 2025, subject to the Company’s right to extend such date, unless earlier redeemed or exchanged by the Company or terminated. Under the rights plan, any person who currently owns more than the Triggering Percentage may continue to own its shares of common stock but may not acquire any additional shares without triggering the rights plan. The rights plan does not prevent any action that the Board determines to be in the best interest of the Company and its stockholders. The dividend distribution to establish the new rights plan will be payable to stockholders of record on October 23,” the company stated.