Bankrupt Bed Bath and Beyond Inc. is expected to sell its intellectual property and some of its digital assets to online retailer Overstock.com Inc. for $21.5 million, according to court documents filed Thursday in U.S. District Court.
Pending court approval at a hearing on June 27, the deal will include Bed Bath and Beyond’s internet properties and business data. This strategic move allows the company to streamline its operations and focus on its core business, while Overstock.com Inc. will be able to expand its reach and strengthen its position in the market.
“Following completion of the court-approved auction process and in consultation with the official committee of unsecured creditors, Bed Bath & Beyond Inc. has selected a proposal from Overstock.com as the winning bidder,” Julie Strider, a Bed Bath & Beyond spokeswoman, said in a statement to the New York Times.
The retailer filed for bankruptcy in April and other companies, including Overstock.com, expressed interest in purchasing assets soon after.
It’s no secret that Bed Bath and Beyond has been struggling in recent years, facing declining sales and increased competition from eCommerce giants like Amazon. The deal doesn’t impact its brick-and-mortar stores, which are set to close by the end of the month. Also not included in the deal is the Buy Buy Baby brand, which will be auctioned off separately.
Among the suitors for Buy Buy Baby is Babylist, a direct-to-consumer baby registry website. The company generated $290 million in revenue in 2022, claims it is profitable and counts over a million new parent sign-ups each year.
Bed Bath & Beyond had 360 namesake stores and 120 Buy Buy Baby locations that were open when it filed for bankruptcy. The retailer had previously committed to closing all of its Harmon FaceValue stores.
For Overstock.com Inc., this deal represents a significant opportunity to grow their business. With access to valuable data and intellectual property, it can better understand its customers and improve their online offerings.
Overstock’s stock jumped on the news, closing at $24.84 a share, which is a 17.28% increase from its previous close.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More