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The Container Store files for bankruptcy

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The Container Store has filed for bankruptcy. It is the latest well-known retailer to fall victim to customers cutting back on discretionary spending.

The 46-year-old company said in a statement late Sunday that filing for Chapter 11 bankruptcy protection will help it “bolster its financial position, fuel growth initiatives, and drive enhanced long-term profitability.” The Container Store revealed in court documents that it has about $230 million in debt and just $11.8 million in cash on hand, but will receive $40 million in fresh financing.

The chain’s 102 locations and website will remain open for orders during the process, which is expected to take 35 days to complete.

“The Container Store is here to stay,” said CEO Satish Malhotra in a statement. “Our strategy is sound, and we believe the steps we are taking today will allow us to continue to advance our business, deepen customer relationships, expand our reach, and strengthen our capabilities.”

Payments to vendors and suppliers will be made as normal and all customer deposits and orders will be honored and delivered, the company said. The Container Store plans to emerge as a private company when the Chapter 11 process is complete.

The company’s Sweden-based Elfa brand, described as a “premium customizable storage system,” isn’t included in the bankruptcy.

The filing comes a few weeks after a deal with Beyond, the parent company of Bed Bath & Beyond and Overstock.com. The Container Store was expected bring Bed Bath & Beyond-branded products to some stores, but that deal appears to be in jeopardy. Beyond previously said that the financing deal was in doubt because the Container Store was struggling to reach an agreement with its lenders.

The Container Store’s stock has already been delisted by the New York Stock Exchange because it failed to meet the exchange’s financial standards.

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UK bans cattle, pigs and sheep imports from Germany after foot-and-mouth case

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The UK has introduced a ban on pigs, sheep and cattle imports from Germany after a case of foot-and-mouth disease was confirmed in the country.
The government said on Tuesday it will no longer approve health certificates for animals, fresh meat and animal products susceptible to the disease to prevent its spread to the UK where there are currently no confirmed cases.
While there is no risk to humans or food safety, foot-and-mouth is highly contagious in pigs, sheep and cattle, as well as other cloven-hoofed animals.
In 2001 and 2007, the UK suffered major outbreaks of the disease, leading to millions of livestock animals being slaughtered across the country.
Farming minister Daniel Zeichner said the government will do “whatever it takes to protect our nation’s farmers from the risk posed by foot-and-mouth”.
He added: “That is why restrictions have immediately been brought in on animal products from Germany to prevent an outbreak, and we will not hesitate to add additional countries to the list if the disease spreads.
“We will continue to keep the situation under review, working closely with the German authorities.”
Foot-and-mouth disease is a legally notifiable disease, meaning it is an offence not to report a case to the government.
As well as culling animals, farmers affected by the disease could see reduced milk production, as well as wider economic implications such as the loss of access to foreign markets for animals and their subsequent products.
Major outbreaks in 2001 and 2007 cost the public and private sectors billions.
For cattle, symptoms of the disease include blisters and sores on their feet, mouth and tongue, as well as lameness, fever and reluctance to feed.
In sheep and pigs, symptoms typically present as lameness and blisters.
UK Chief Veterinary Officer Dr Christine Middlemiss has asked “livestock keepers to exercise the upmost vigilance for signs of disease, follow scrupulous biosecurity, and report any suspicion of disease immediately to the Animal and Plant Health Agency”.
The government recently announced a £200m investment in the UK’s main research and laboratory testing facilities at Weybridge to bolster protection against animal disease.

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Spain plans 100% tax for homes bought by non-EU residents

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Spain is planning to impose a tax of up to 100% on the value of properties bought by non-residents from countries outside the EU, such as the UK.
Announcing the move, Prime Minister Pedro Sánchez said the “unprecedented” measure was necessary to meet the country’s housing emergency.
“The West faces a decisive challenge: To not become a society divided into two classes, the rich landlords and poor tenants,” he said.
Non-EU residents bought 27,000 properties in Spain in 2023, he told an economic forum in Madrid, “not to live in” but “to make money from them”.
“Which, in the context of shortage that we are in, [we] obviously cannot allow,” he added.
The move was designed to prioritise available homes for residents, the Spanish prime minister said.
Sánchez did not provide any more details on how the tax would work nor a timeline for presenting it to parliament for approval, where he has often struggled to gather sufficient votes to pass legislation.
His office described the proposed measure as a way to limit the purchase of homes by “non-resident non-EU foreigners”. In Spain, people are classed as non-residents if they live in the country for less than 183 days in a single year.
It added: “The tax burden that they will have to pay in case of purchase will be increased up to 100% of the value of the property, in line with countries such as Denmark and Canada.”
Currently non-residents can be expected to pay 6-10% in tax on the property’s value depending on the region and if the property is new or not.
The Spanish government said the proposal would be finalised “after careful study”.

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TikTok users flock to Chinese app RedNote as US ban looms

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TikTok users in the US are migrating to a Chinese app called RedNote with the threat of a ban just days away.
The move by users who call themselves “TikTok refugees” has made RedNote the most downloaded app on Apple’s US App Store on Monday.
RedNote is a TikTok competitor popular with young people in China, Taiwan and other Mandarin-speaking populations.
It has about 300 million monthly users and looks like a combination of TikTok and Instagram. It allows users, mostly young urban women, to exchange lifestyle tips from dating to fashion.
Supreme Court justices are due to rule on a law that set a 19 January deadline for TikTok to either sell its US operations or face a ban in the country.
TikTok has repeatedly said that it will not sell its US business and its lawyers have warned that a ban will violate free speech protections for the platform’s 170 million users in the US.

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