NEWARK, NJ – Bankrupt retailer Bed Bath & Beyond has decided to abandon its search for a buyer for its entire Buy Buy Baby business. Instead, the company will seek approval from a U.S. court for a more limited sale of Buy Buy Baby’s intellectual property assets.
Dream On Me Industries, a New Jersey-based baby products retailer, has been named the lead bidder for the Buy Buy Baby intellectual property. They have agreed to pay $15.5 million in cash for the brand’s intellectual property, which includes the company’s name, sales data, websites, and mobile apps.
The auction that was scheduled for Friday has been canceled since no bidder offered a higher or better bid than Dream on Me. Bed Bath & Beyond will now seek court approval for the sale of Buy Buy Baby’s intellectual property at a hearing on July 11.
Bed Bath & Beyond has previously pursued a similar strategy for its own intellectual property, selling its name, customer data, and online assets to Overstock.com for $21.5 million. Overstock plans to rebrand itself as an online-only version of Bed Bath & Beyond without acquiring any of the bankrupt retailer’s physical stores or inventory.
Bed Bath & Beyond filed for Chapter 11 bankruptcy protection in April due to declining sales and a failed merchandising strategy. The company has been struggling for years to adapt to changing consumer preferences and increased competition.