Bed Bath & Beyond is running a separate auction for Buybuy Baby.
The baby products retailer’s assets are set to be auctioned on June 28, which will “allow more time to progress discussions with interested parties for those assets,” a Bed Bath & Beyond spokesperson wrote in an email to Sourcing Journal. A final sale hearing to approve the winning bidder is scheduled for July 11.
Meanwhile, Wednesday’s planned auction will put Bed Bath & Beyond’s remaining assets up for grabs after Overstock.com was named the stalking-horse bidder earlier this month.
Related Stories
Conducting a second, separate auction for the home retailer’s most desirable holding will allow Bed Bath & Beyond to get top dollar, which creditors should appreciate.
The home retailer has been trying to sell off its best bits since bankruptcy started to look likely earlier this year. But talks with private equity firm Sycamore Partners and brand management firm Authentic Brands Group eventually fizzled out.
Last summer, Wall Street analysts said Buybuy Baby could fetch $630 million to $910 million. Selling off the baby brand could have bought Bed Bath & Beyond some time to get its balance sheet in order but the retailer nixed that idea and there’s no telling if a sale could have kept it out of bankruptcy.
What isn’t clear is how much Buybuy Baby is worth now.
The two bidders interested in Buybuy Baby have vastly different visions. One wants to buy it and keep about 90 stores open, while the second only wants to take overthe baby retailer’s trademark and domain assets. The speculation is that Go Global Retail, which has not responded to a request for comment, is one of the potential bidders that wants to keep Buybuy Baby in business. Babylist has confirmed its interest in the Buybuy Baby trademark and domain name.
Bed Bath & Beyond filed its Chapter 11 petition in a New Jersey bankruptcy court on April 23.
