SUMMARY
- Overstock.com wins auction for Bed Bath & Beyond's intellectual property and digital assets for $21.5 million
- Separate sales process initiated for high-value Buy Buy Baby chain to keep stores operational
- JOWA Brands and software company Ten Twenty Four poised as backup bidders for Wamsutta brand and Beyond.com respectively
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The renowned home goods retailer Bed Bath & Beyond is set for a dramatic transformation after Overstock.com clinched the auction for its intellectual property and digital assets. As early Thursday court documents reveal, the internet discount giant, who stood as the lead bidder amidst Bed Bath’s bankruptcy auction, will acquire the brand identity, business data, and digital resources of the distressed retailer for a neat sum of $21.5 million.
However, this arrangement, sadly, does not foresee keeping the doors of Bed Bath's physical stores open. The closing deal amount equals Overstock's initial bid, marking the lowest acceptable price at the auction. This signals that the beleaguered Bed Bath didn’t manage to attract higher or more appealing offers.
In a separate development, JOWA Brands emerged as the contingency bidder for Bed Bath's exclusive Wamsutta brand, an in-house line dedicated to sheets and towels. Additionally, Ten Twenty Four, a software company aiding vacation rental revenues under the business name Beyond Pricing, is poised as the alternate bidder for the retailer's Beyond.com asset. Should the Overstock arrangement meet any unforeseen snags, Ten Twenty Four could potentially claim rights to the valuable domain name.
However, these transactions still await validation in a hearing scheduled for next Tuesday. In an unusual decision, Bed Bath & Beyond has chosen to run a distinct sales process for its Buy Buy Baby chain, a brand of immense value within its portfolio.
This standalone process paves the way for Bed Bath to find a bidder ready to maintain the existing stores under the Buy Buy Baby banner, thereby circumventing the complexities of Bed Bath's assets. Even before Bed Bath's bankruptcy filing in April, the Buy Buy Baby brand, a retailer of baby clothes, furniture, and other goods, had captured the attention of prospective buyers. CNBC previously reported a surge in interest from potential investors keen on preserving its physical retail presence during the ongoing sale process. An auction to decide the future of Buy Buy Baby’s assets is set for Wednesday.
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