Bed Bath & Beyond which filed for bankruptcy in April is expected to live on through Overstock.com.
In a news release, Overstock.com announced Thursday that it will be purchasing “intellectual property assets” of Bed Bath & Beyond.
A United States bankruptcy judge approved Overstock.com’s $21.5 million purchase of Bed Bath & Beyond’s brand name as well as intellectual property and e-commerce, Reuters reported.
Overstock.com will be getting rid of its name online and will become Bed Bath & Beyond, according to The Associated Press.
“This acquisition is a significant and transformative step for us,” said Overstock CEO, Jonathan Johnson, in the news release.
“Bed Bath & Beyond is an iconic consumer brand, well-known in the home retail marketplace. The combination of our winning asset-light business model and the high awareness and loyalty of the Bed Bath & Beyond brand will improve the customer experience and position the company for accelerated market share growth.”
“Combining the strengths of the Overstock operational model and the Bed Bath & Beyond brand will create a powerful synergy,” Johnson said in the news release. “I’m excited for consumers to experience the new Bed Bath and an even bigger and better Beyond.”
“If handled carefully and with good communication, the rebrand should not alienate existing Overstock customers,” Neil Saunders, retail analyst and managing director at GlobalData Retail told CNN. “It will also ensure that Overstock gains the custom of Bed Bath & Beyond customers and loyalists, which, despite the company’s problems over the past few years, remain extensive.”
The deal does not include the buybuy Baby chain, according to the AP. It also does not include Bed Bath & Beyond stores which are closing.
