Home-goods retailer Bed Bath & Beyond, which filed for bankruptcy in April, accepted a $21.5 million bid from Overstock.com to acquire its assets, according to a report. court filing on Thursday.
“Following the completion of the court-approved auction process and in consultation with the Official Committee of Unsecured Creditors, Bed Bath & Beyond Inc. has selected Overstock as the winning bidder,” Bed Bath & Beyond spokeswoman Julie Strider said in a statement. Said.
Ms. Strider said Overstock would receive Bed Bath & Beyond’s assets, including its intellectual property, business data, rights to mobile apps and certain contracts. Overstock “will assume certain specified liabilities,” she said.
Online retailer Overstock, known for selling large furniture such as sofas and desks, declined to comment.
The acquisition will need to be approved by the court during a hearing Tuesday 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 are slated to close by the end of the month.
According to the filing, Bed Bath & Beyond accepted Overstock’s “horse bid,” meaning it made the first bid on Bed Bath & Beyond’s assets.
Overstock has been expanding its home decor and small appliance offerings in recent years as shoppers’ demand for large purchases has dropped from pandemic highs. Bed Bath & Beyond’s downturn in 2022 presents Overstock with an opportunity to court the beleaguered retailer’s sellers, Overstock Chief Executive Jonathan Johnson has said.
It was one of several companies scrambling to win back Bed Bath & Beyond’s vendors, 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 corporate names. A bankrupt retailer selling its intellectual property allows it to survive in some form because the buyer can then market the brand. Such has been the case with Toys ‘R’ Us, which filed for bankruptcy 2017 and found new life as a revived brand.
Bidders are also looking to buy parts of BuyByBaby, which is owned by Bed Bath & Beyond. It will happen in a separate auction next week and the winning bidder can try to keep those stores open.
