Household goods retailer Bed, Bath & Beyond, which filed for bankruptcy in April, has accepted a $21.5 million bid from Overstock.com to buy assets, according to one source. Court submission on thursday.
“Following the completion of the court-approved auction process and consultation with the official committee of unsecured creditors, Bed Bath & Beyond will sell to Overstock,” said Julie Strider, a spokesperson for Bed Bath & Beyond. We selected the proposal from .com as the winning bidder.” said in a statement.
Overstock will receive assets such as Bed, Bath & Beyond’s intellectual property, business data, mobile app rights and certain contracts, Strider said. Excess inventory “will lead to certain specific liabilities,” he added.
Overstock, an online retailer known for selling large pieces of furniture such as sofas and desks, declined to comment.
The acquisition is subject to court approval at a hearing in New Jersey’s federal bankruptcy court on Tuesday.
The deal does not affect plans for a Bed, Bath & Beyond store of the same name, which is set to close by the end of the month.
According to the filing, Bed Bath & Beyond accepted Overstock’s “chasing bid,” which means the company has made an initial bid for Bed, Bath & Beyond’s assets.
Excess inventory has expanded its selection of upholstery and small appliances in recent years as demand from shoppers seeking big-ticket items dwindles due to pandemic high prices. Overstock CEO Jonathan Johnson says Bed, Bath & Beyond’s 2022 slump has given Overstock an opportunity to court the distressed retailer’s vendors. rice field.
The company is one of several companies scrambling to win over its vendors, real estate and customers in the two months since Bed, Bath & Beyond announced it would wind down its more than 50-year-old business. It was just one company.
Overstock’s acquisition of Bed, Bath & Beyond’s intellectual property may include patents, logos and company names. Even if a retailer in bankruptcy sells its intellectual property, the buyer can sell the brand, so in some way the retailer can survive. Toys “R” Us did the same, filing for bankruptcy in 2017 and taking a new lease of life as a revived brand.
The bidder is also looking to acquire a portion of Bye Bye Baby owned by Bed, Bath & Beyond. That will take place at another auction next week, and the winning bidder could try to keep those stores open.
