Introduction
Bed Bath & Beyond has made the decision to cancel an auction for its prized Buybuy Baby chain after failing to receive any better offers. Despite speculation that the infant-focused chain would attract substantial bids, the company did not secure any higher or more attractive offers. As a result, Bed Bath & Beyond intends to sell Buybuy Baby to Dream on Me Industries, pending court approval.
Background
Bed Bath & Beyond filed for bankruptcy in late April and has since been receiving bids for various parts of its business. In late June, the company announced that Overstock.com’s $21.5 million bid had won the auction for Bed Bath’s intellectual property, brand name, and online platforms. Overstock.com plans to undergo a strategic overhaul and rebrand itself as Bed Bath & Beyond.
Buybuy Baby Auction
Multiple parties, including baby registry website Babylist and former Bed Bath vendor Dream on Me Industries, submitted bids for Buybuy Baby. Dream on Me emerged as the initial bidder for the brand, making it the offer to beat at the auction. However, no other parties came forward with higher or more attractive bids, leading Bed Bath & Beyond to cancel the auction.
Selling to Dream on Me
Bed Bath & Beyond will now seek court approval to proceed with the sale of Buybuy Baby to Dream on Me Industries. The exact details of Dream on Me’s bid, including the amount offered and whether it includes Buybuy Baby’s inventory or physical stores, have not been disclosed in court filings. This sale is expected to undergo a hearing next week.
Conclusion
Despite high expectations and multiple bidders for Buybuy Baby, Bed Bath & Beyond did not receive any better offers and has chosen to sell the chain to Dream on Me Industries. The company’s bankruptcy proceedings continue, with various parts of its business being auctioned off to help facilitate its recovery.
