Topline
Bed Bath & Beyond’s brand name, business data and digital assets now belong to Overstock.com after a successful $21.5 million bankruptcy bid that does not include the company’s popular Buy Baby Buy franchise, nor does it mean Bed Bath’s stores will stay open.
People walk past a Bed Bath & Beyond store on Oct. 01, 2021 in the Tribeca neighborhood in New York … [+] City. Michael M. Santiago/Getty Images
Key Facts
Overstock.com was selected as the stalking horse bidder for the Bed Bath bankruptcy-run auction, and its win suggests Bed Bath didn’t receive higher bids.
Before the auction Wednesday, a separate sale process was scheduled for Buy Buy Baby as the franchise looks to nab a bid solely for what is considered its crown jewel asset, and the right bidder could keep the baby-merchandise retailer’s stores open.
The Buy Baby Buy auction is scheduled for June 28.
Key Background
Bed Bath & Beyond announced its bankruptcy and plans to liquidate all inventory in April. The company secured a $240 million loan to help fund its operations during bankruptcy, CNN reported, and has kept its 360 locations open as it tries to sell off the last of its merchandise. The company employed 14,000 people and followed other similar single-category retailers like Toys “R” Us, Circuit City and Sports Authority to bankruptcy.
Tangent
Bed Bath and Beyond is far from the first legacy company to file for bankruptcy this year. David’s Bridal, which emerged from its first bankruptcy in 2019, filed again in April days after it announced it would lay off more than 9,000 employees. Discount homegoods store Tuesday Morning, Serta Simmons Bedding, Christmas Tree Shops, Party City and wholesale e-commerce brand Boxed also all entered into bankruptcy proceedings this year.
Further Reading
The rise and fall of Bed Bath & Beyond (Insider)
Vice Media Files For Chapter 11 Bankruptcy Ahead Of Planned Sale To Creditors (Forbes)
Corporate Bankruptcies Are Rising At A Concerning Rate (Forbes)
