US judge approves Overstock's $21.5 mln Bed Bath & Beyond purchase

Bed Bath & Beyond

27/06/2023 22:19

By Dietrich Knauth
       NEW YORK, June 27 (Reuters) - A U.S. bankruptcy judge on
Tuesday approved Overstock.com's $21.5 million purchase of Bed
Bath & Beyond's brand name, intellectual property and ecommerce
platform.
    U.S. Bankruptcy Judge Vincent Papalia approved the sale at a
court hearing in Newark, New Jersey, saying that he was
"gratified" to see a bidder emerge that would preserve Bed Bath
& Beyond's brand. 
    Overstock emerged as the winning bidder for the company's
intellectual property in a deal worth $21.5 million, court
filings showed on Thursday. Bed Bath & Beyond stores and
inventory are not part of the deal. 
   Once a storied retailer, Bed Bath & Beyond filed for Chapter
11 bankruptcy protection in April after struggling for years
with dwindling sales and a failed merchandising strategy.
    Bed Bath & Beyond is hosting a separate auction starting
tomorrow for its Buy Buy Baby chain, which sells products for
infants and toddlers. The Buy Buy Baby assets have attracted
interest from investment firms Go Global Retail and Sixth Street
Partners, according to media reports.
    Bed Bath & Beyond is also making good progress in winding
down its store footprint, and it is finalizing hundreds of lease
transfer agreements after a successful lease auction yesterday,
the company's attorney, Emily Geier, told Pappalia. 
    Bed Bath & Beyond's negotiations with its lenders have not
gone as smoothly, and the company will be back in court tomorrow
to defend the $240 million loan it took out at the start of its
bankruptcy case. A group of junior bondholders alleged Tuesday
that the bankruptcy loan was based on inaccurate financial
information, causing Bed Bath and Beyond to borrow more money
than it needed and eroding potential repayments for junior
creditors. 
    The company's lawyers defended the bankruptcy loan, saying
that it was negotiated in good faith and provided necessary
funding for an organized sale of its assets. 

 (Reporting by Dietrich Knauth, Editing by Alexia Garamfalvi)
 ((Dietrich.Knauth@thomsonreuters.com;))