Signage is displayed outside the permanently closed Bed Bath & Beyond retail store on May 1, 2023 in Hawthorne, CA.
Patrick T. Fallon | AFP | Getty Images
Bed bath and others In name only Overstock Network allegedly won an auction for the failed home furnishings retailer’s intellectual property and digital assets court records Submitted early Thursday.
The e-commerce discounter was selected as a trail bidder in Bed Bath’s bankruptcy auction, paying $21.5 million for the chain’s brand name, business data and digital assets, records show.
Shares of Overstock rose about 8% in premarket trading on the news.
The deal does not include keeping Bed Bath’s stores open. The sale price was the same as Overstock’s trailing horse bid, which set the auction’s reserve price, suggesting Bed Bath received no higher or more attractive bids.
JOWA Brands was selected as the back-up bidder for Bed Bath’s Wamsutta brand, the retailer’s private linen and towel brand.
Ten Twenty Four, a software company that helps property owners maximize vacation rental income and does business under the name Beyond Pricing, was selected as a backup bidder for the retailer’s Beyond.com property. If the deal with Overstock falls through, Ten Twenty Four could win the rights to the domain.
The sale still needs to be approved at a hearing on Tuesday.
Bed Bath has made the rare choice to conduct a separate sales process for its Buy Buy Baby chain, considered the crown jewel of its assets.
The separate process allows the company to find bidders willing to keep banner’s stores open without the headache of taking over Bed Bath’s assets.
The Buy Buy Baby property was attracting buyer interest even before Bed Bath filed for bankruptcy in April.
The chain, which sells baby clothes, furniture and other merchandise, attracted interested buyers during the sale, including potential bidders interested in maintaining its physical footprint, CNBC previously reported.
An auction of the Buy Buy Baby assets is scheduled for Wednesday.