Overstock.com accomplished its $21.5 million purchase of Bed Bath & Beyond’s brand name, mental property and ecommerce platform Wednesday after a US bankruptcy judge approved the deal.
Inside the following week, Overstock plans to re-launch the Bed Bath & Beyond domain in Canada, followed weeks later by the re-launch of a refreshed website, mobile app, and loyalty program within the US.
US Bankruptcy Judge Vincent Papalia approved the sale at a court hearing in Newark, NJ, saying that he was “gratified” to see a bidder emerge that might preserve Bed Bath & Beyond’s brand.
Overstock emerged because the winning bidder for the corporate’s mental property in a deal value $21.5 million, court filings showed. Bed Bath & Beyond stores and inventory are usually not a part of the deal.
Once a storied retailer, Bed Bath & Beyond filed for Chapter 11 bankruptcy protection in April after struggling for years with dwindling sales and a failed merchandising strategy.
Once a storied retailer, Bed Bath & Beyond filed for Chapter 11 bankruptcy protection in April.REUTERS
Bed Bath & Beyond is hosting a separate auction for its Buy Buy Baby chain, which sells products for infants and toddlers. The Buy Buy Baby assets have attracted interest from investment firms Go Global Retail and Sixth Street Partners, in keeping with media reports.
Bed Bath & Beyond can also be making good progress in winding down its store footprint, and it’s finalizing tons of of lease transfer agreements after a successful lease auction yesterday, the corporate’s attorney, Emily Geier, told Pappalia.
Bed Bath & Beyond’s negotiations with its lenders haven’t gone as easily, and the corporate was in court Wednesday to defend the $240 million loan it took out at the beginning of its bankruptcy case. A gaggle of junior bondholders alleged Tuesday that the bankruptcy loan was based on inaccurate financial information, causing Bed Bath and Beyond to borrow extra money than it needed and eroding potential repayments for junior creditors.
The corporate’s lawyers defended the bankruptcy loan, saying that it was negotiated in good faith and provided mandatory funding for an organized sale of its assets.
