A sign is seen outside a permanently closed Bed Bath & Beyond retail store on May 1, 2023 in Hawthorne, California.
Patrick T. Fallon AFP | Getty Images
Bed bath and others will only exist in name only Overstock.com Reportedly won an auction for the failed home furnishings retailer’s intellectual property and digital assets court records Submitted early Thursday.
The e-commerce discounter was selected as a potential bidder in Bed Bath’s bankruptcy auction, paying $21.5 million for the chain’s brand name, business data and digital assets, records show.
Shares of Overstock rose about 8 percent in premarket trading on the news.
The deal does not include keeping Bed Bath stores open. The sale price was the same as Overstock’s trailing bid, which sets the auction’s reserve price, suggesting Bed Bath received no higher or more attractive bids.
Jowa Brands was selected as back-up bidder for Bed Bath’s Wamsutta brand, the retailer’s private linen and towel line.
Twelve Fourteen, a software company that helps property owners maximize vacation rental revenue and does business under the name Beyond Pricing, was selected as a backup bidder for the retailer’s Beyond.com assets. If the deal with Overstock falls through, Ten Twenty Four may win the rights to the domain name.
The sale still needs to be approved at a hearing on Tuesday.
Bed Bath has made the rare choice to conduct a separate sales process for its “Buy Buy Baby” chain of stores, considered the crown jewel of its holdings.
This separate process allowed the company to find bidders willing to keep the banner store open without the headache of acquiring Bed Bath’s assets.
Even before Bed Bath filed for bankruptcy in April, the Buy Buy Baby property was attracting buyers.
The chain, which sells baby clothes, furniture and other merchandise, attracted interested buyers during the sale, including potential bidders considering retaining its physical footprint, CNBC previously reported.
An auction of Buy Buy Baby’s assets is scheduled for Wednesday.