Overstock wins auction for some Bed Bath & Beyond assets for $21.5 million

Overstock (OSTK) won an auction for Bed Bath &amp ; Beyond's intellectual property and digital assets for $21.5 million, according to court documents filed Thursday morning.

KEY POINTS

  • Overstock has won an auction for part of Bed Bath & Beyond intellectual property rights and digital assets for $21.5 million.
  • All physical Bed Bath stores will be closed.
  • The Buy Buy Auction Baby will be held separately.

Bed Bath & Beyond filed for bankruptcy earlier this year after a sharp drop in demand and mounting losses prevented the company from buying the inventory needed to sustain sales. With its stores closing, Bed Bath & Beyond would exist in name only, and the sale of its brand name, business data and digital assets to Overstock will still need to be approved at a hearing on Tuesday.

Shares of Overstock jumped more than 10% in early trading after the news./>

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Last week, Overstock offered to buy assets at the offer price, but Bed Bath & Beyond had said he would continue to solicit other offers. JOWA Brands was the standby bidder for Bed Bath & Beyond the Wamsutta brand, a private label of linens and towels owned by bankrupt homeware retailers. Software company Ten Twenty Four, which helps owners maximize vacation rental income and does business as Beyond Pricing, was the backup bidder for Bed Bath & Beyond's Beyond.com asset.

Bed Bath & Beyond will conduct a separate sales process for its Buy Buy Baby channel. Retail investment firm Go Global Retail, owner of children's clothing retailer Jani And Jack, has reportedly made an offer to buy the baby-focused business.

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Source: investopedia.com

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