Bed Bath & Beyond’s stores may be shuttering, but its brand will live on after Overstock.com won an auction for the bankrupt retailer’s intellectual property.
Overstock’s winning bid was placed at $21.5 million, according to court records filed Thursday. The deal is subject to court approval, with a hearing to approve the sale scheduled for Tuesday.
The auction follows Bed Bath & Beyond’s decision to file for bankruptcy in April after operating under declining sales and numerous failed turnaround plans. The home goods retailer declined to share how many stores remain open at this time but said it is closing “select” Bed Bath & Beyond and Buy Buy Baby stores across the country through the end of the month.
“We encourage customers to come shop our store closing sales while ample inventory remains,” the company said in an emailed statement.
A statement from Overstock said the e-commerce retailer is declining to comment until the deal is final.
What does Overstock get from the auction?
Overstock was the first to bid and set the minimum price. The deal includes Bed Bath & Beyond’s intellectual property, business data, rights to mobile apps, certain contracts and other related assets but not its brick-and-mortar stores or Buy Buy Baby assets.
Software company Ten Twenty Four was named the backup bidder for the retailer’s Beyond.com domain name, while Jowa Brands is the backup bidder for its private sheets and towels label, Wamsutta. The companies can purchase the assets if the Overstock deal collapses.
What happens to Buy Buy Baby?
Bed Bath & Beyond’s Buy Buy Baby chain will be sold off in a separate sales process. The auction is set for June 28.
How did the market react?
Overstock shares were up more than 16% midday on Thursday, trading at $24.70 on the Nasdaq stock exchange.
