BuyBuy Baby Stores May Soon Shutter — Retail Bum

Bankrupt retailer Bed Bath & Beyond’s BuyBuy Baby business might close its 120 stores soon as no bids were received by last week’s deadline.

The brand is still expected to continue to live on as New Jersey-based baby and furniture retailer Dream On Me won its intellectual property rights for $15.5 million in an auction last week. The deal must still go through the court’s approval process on July 11, 2023.

Just a year ago, BuyBuy Baby was estimated to be worth nearly $1 billion. However, as Bed Bath & Beyond’s bankruptcy dragged on, the baby brand lost its value amidst dwindling inventory.

“Most of the value was in the IP, especially at this point in the process. One can imagine that three months ago, when they were fully functioning stores operating, and running, that might not be the case,” an unnamed source told CNBC.

The sale of BuyBuy Baby’s IP rights comes days after Overstock.com’s acquired those of Bed Bath & Beyond and announced plans to rebrand itself.

According to Overstock CEO Jonathan Johnson, Bed Bath & Beyond’s brand name is still well-favored by consumers, making it a ripe opportunity to attract and retain new customers.

“My experience is that management — mismanagement — can kill companies but doesn’t kill brands. There are lots of brands that have gone through bankruptcy that remain strong and iconic today. The Bed Bath & Beyond brand, we think, will be such a brand,” Johnson said.

Originally published at https://retailbum.com on July 10, 2023.