Overstock.com has put in a $21.5 million bid for some of Bed Bath & Beyond’s assets, including its intellectual property, business internet, and mobile properties, and all business data, CNBC reported Tuesday (June 13).
This comes after the bankrupt retailer sought Chapter 11 protection in April, following months of failed turnaround efforts and bankruptcy warnings. The deadline for any party in interest to object to the bid is June 20.
If the bid goes through, all Bed Bath & Beyond stores will be closed for good, as the bid only includes certain assets and liabilities, excluding brick-and-mortar stores.
Overstock.com has been selected as the “stalking horse” bidder for the intellectual property behind Bed Bath & Beyond’s namesake banner, giving them the ability to get the first bid on Bed Bath & Beyond’s remaining assets. The bid also offers a break-up fee equal to 2% of the purchase price, or $430,000, and expense reimbursements of up to 2%.
Jonathan Johnson, CEO at Overstock.com, expressed optimism that the retail business, which specializes in furniture and home decor sales at approachable prices, will pick up in the second half of the year, especially after business boomed during the pandemic and peaked at 8 million customers at the end of 2020.
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, but the offer from Overstock.com does not include Bed Bath & Beyond or Buy Buy Baby’s store locations.
Competing bids for Bed Bath & Beyond’s assets are due by Friday, and the auction is expected to take place on June 21.
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