The Bed Bath & Beyond banner will live on. It was revealed last night that the brand name has been acquired in bankruptcy court, with Overstock.com (NASDAQ: OSTK) slated to acquire the failed brand.
The transaction sees Overstock acquire the trademarks, tradenames, website and domain names, customer database, patents, loyalty program, and other brand assets related to the Bed Bath & Beyond banner. Notably, the online retailer will not be acquiring any of the brick and mortar business, with the revived banner slated to become an online-only brand with no physical presence.
The banner was acquired for US$21.5 million, which was acquired via the US Bankruptcy Court through a winning bid on the assets.
“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,” commented Overstock’s CEO Jonathan Johnson.
The acquisition of the banner will result in Overstock rebranding its online shopping destination for new and existing Overstock and Bed Bath & Beyond customers into a single online location. Canadian consumers will be the first to experience this, with bedbathandbeyond.ca set to go live within the next week, while its US counterpart with a revised mobile app and loyalty program will go live weeks later, with both brands coming together under the Bed Bath & Beyond banner in that market as well.
The loyalty program offered by Overstock meanwhile will be rebranded as Welcome Rewards.
The rebranding of Overstock’s online platform, as well as the acquisition of the Bed Bath & Beyond banner, follows the online retailer struggling to maintain revenues. The company revealed last night that its second quarter 2023 results are expected to see revenue decline “in the low-20% range” when compared to the second quarter of 2022. The decline is being blamed on a highly competitive promotional and marketing environment combined with weak consumer sentiment.
Overstock.com last traded at $25.54 on the Nasdaq.
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