Bed Bath & Beyond, the home-goods retailer that filed for bankruptcy in April, accepted a $21.5 million bid from Overstock.com to acquire its assets, according to a court filing on Thursday.
“Following completion of the court-approved auction process and in consultation with the official committee of unsecured creditors, Bed Bath & Beyond Inc. has selected a proposal from Overstock.com as the winning bidder,” Julie Strider, a Bed Bath & Beyond spokeswoman, said in a statement.
Overstock will receive Bed Bath & Beyond’s assets, which include its intellectual property, business data, rights to mobile apps and certain contracts, Ms. Strider said. Overstock will “assume certain specified liabilities,” she added.
Overstock, the online retailer known for selling large furniture like couches and desks, declined to comment. Its stock rose more than 17 percent on Thursday.
The acquisition will need to be approved during a hearing on Tuesday in the U.S. Bankruptcy Court for the District of New Jersey.
The deal does not affect Bed Bath & Beyond’s plans for its namesake stores, which are set to close by the end of the month.
According to the filing, Bed Bath & Beyond accepted Overstock’s “stalking horse bid,” meaning that Overstock made the first bid on Bed Bath & Beyond’s assets.
Overstock has been expanding its home décor and small appliance offerings in recent years as shopper demand for big-ticket purchases has come down from its pandemic highs. Bed Bath & Beyond’s downturn in 2022 presented Overstock with an opportunity to court the beleaguered retailer’s vendors, Jonathan Johnson, the chief executive of Overstock, has said.
It was just one of several companies that have been scrambling to win over Bed Bath & Beyond’s vendors, real estate and customers in the two months since the retailer said it would wind down operations after more than 50 years.
Overstock’s acquisition of Bed Bath & Beyond’s intellectual property could include patents, logos and corporate names. A bankrupt retailer selling its intellectual property allows it to live on in some form because the buyer can then market the brand. That has been the case with Toys “R” Us, which filed for bankruptcy in 2017 and found new life as a resurrected brand.
Bidders are also looking to acquire parts of BuyBuy Baby, which Bed Bath & Beyond owns. That will take place in a separate auction next week, and the winning bidder could try to keep those stores open.
Source: New York Times
