New York (CNN) — Bed Bath & Beyond will live on. The brand, that is, not the stores.
The retailer’s name, intellectual property and digital assets were purchased by Overstock.com for $21.5 million, according to court documents released Thursday. However, the deal won’t keep its stores open, which are currently closing after Bed Bath & Beyond filed for bankruptcy in April.
Overstock’s bid was the first and ultimately the most lucrative for Bed Bath & Beyond’s assets, setting the minimum price (a.k.a. a stalking horse bid). Ten Twenty Four, a software company, also bid for the Beyond.com domain and will buy it if Overstock’s deal falls through.
A hearing is set for next Tuesday to finalize the purchase. Overstock didn’t immediately return CNN’s request for comment.
The buybuyBaby chain, which Bed Bath & Beyond owns, is being sold off in a separate sales process and is considered the most attractive part of the retailer’s assets. Neil Saunders, a retail analyst and managing director at GlobalData Retail, previously told CNN that the buybuyBaby business “is the one part of the operation that will probably attract interest from buyers.”
If the Overstock bid is approved, Bed Bath & Beyond will join a list of collapsed retailers whose brands got a second lease of life – in a very different form. Toys “R” Us and Linens ‘n Things, Radio Shack and Pier 1 are just some of companies considered “zombies,” where investment firms scoop up the recognizable assets for dirt-cheap prices and hope to revive them, usually online.
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