Overstock.com wins $21.5 million bid for Bed Bath & Beyond assets
Bed Bath & Beyond, the home goods retailer that filed for bankruptcy in April, accepted a $21.5 million offer from Overstock.com to acquire its assets, according to a file in court on Thursday.
“Upon completion of the court-approved auction process and in consultation with the official Unsecured Creditors’ Committee, Bed Bath & Beyond Inc. has selected a proposal from Overstock.com as the winning bidder,” Julie Strider, a spokeswoman for Bed Bath & Beyond, a statement said.
Overstock will receive Bed Bath & Beyond’s assets, including its intellectual property, company data, mobile app rights and certain contracts, Ms. Strider said. Overstock will “take on certain specified obligations,” she added.
Overstock, the online retailer known for selling large furniture items such as sofas and desks, declined to comment.
The acquisition must be approved by a court Tuesday at a hearing in the United States Bankruptcy Court for the District of New Jersey.
The deal does not affect Bed Bath & Beyond’s plans for its namesake stores, which will close by the end of the month.
According to the filing, Bed Bath & Beyond had accepted Overstock’s “stalking horse offer,” meaning it was making the first bid for Bed Bath & Beyond’s assets.
Overstock has expanded its home furnishings and small appliance offerings in recent years as shoppers’ demand for large purchases has plummeted following the pandemic highs. Bed Bath & Beyond’s 2022 downturn presented Overstock with an opportunity to bring the beleaguered retailer’s sellers to justice, said Jonathan Johnson, Overstock’s CEO.
It was just one of several companies that made an effort to win over Bed Bath & Beyond’s sellers, real estate and customers in the two months since the retailer said it would cease operations after more than 50 years.
Overstock’s acquisition of Bed Bath & Beyond’s intellectual property may include patents, logos and company names. A bankrupt retailer selling its intellectual property allows it to live on in some form because the buyer can then market the brand. Such was the case with Toys ‘R’ Us, which filed for bankruptcy in 2017 and found new life as a resurrected brand.
Bidders are also looking for parts of BuyBuy Baby, which Bed Bath & Beyond owns. That happens next week in a separate auction, and the winning bidder could try to keep those stores open.