Overstock.com Is Bed Bath & Beyond’s Stalking Horse Bidder
Overstock.com is the official stalking-horse bidder in Bed Bath & Beyond’s bankruptcy.
The digital retailer isn’t interested in taking on the Union, N.J. company’s stores, according to court documents.
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In a statement Tuesday, Bed Bath & Beyond confirmed Overstock’s $21.5 million bid for some of its assets. Those include data, intellectual property, mobile apps as well as some contracts, plus some of Bed Bath & Beyond’s “specified liabilities.” The bankrupt chain will continue to “solicit bids” this week up until Friday, the anticipated deadline for offers to be submitted, and hold an auction on June 21 if other bidders materialize. A June 27 hearing will finalize a sale, it said.
Since Bed Bath & Beyond filed for Chapter 11 bankruptcy in April, the 360 Bed Bath & Beyond doors and 120 BuyBuy Baby locations it owns have been liquidating inventory with going-out-of-business sales which are expected to wrap up this month.
Though Overstock is now the stalking horse, or the bidder that typically sets the minimum price for subsequent bids, that doesn’t necessarily mean it’s automatically the new owner. It could face competition from rivals such as Janie and Jack parent Go Global, which has shown interest in the desirable BuyBuy Baby operation. A spokeswoman for direct-to-consumer baby registry website Babylist has confirmed to Sourcing Journal that the company is eyeing Buybuy Baby’s trademark and domain name. Bed Bath & Beyond would use an auction to figure out what combination of offers would give it the highest or best return for creditors, meaning it could split up assets among different bidders.
Overstock has already put 10 percent of the purchase price into escrow, according to an SEC filing.
Bankruptcy court documents indicate that Overstock would be entitled to a break-up fee of 2 percent of the $21.5 million bid, or $430,000, plus expense reimbursement, should Bed Bath & Beyond go with a different buyer.
Meanwhile, A&G Realty Partners is shopping the 482 valuable Bed Bath & Beyond leases up for auction for the stores that closed pre-bankruptcy.
Bed Bath & Beyond’s Chapter 11 petition listed assets and liabilities between $1 billion to $10 billion each.
