Bed Bath & Beyond Inc. selected baby goods company Dream on Me Industries Inc. as the initial winner of an auction for the bankrupt retailer’s BuyBuy Baby brand, with the hope that a higher bid might emerge to keep the brand’s stores alive, according to court papers.
(Bloomberg) — Bed Bath & Beyond Inc. selected baby goods company Dream on Me Industries Inc. as the initial winner of an auction for the bankrupt retailer’s BuyBuy Baby brand, with the hope that a higher bid might emerge to keep the brand’s stores alive, according to court papers.
Although New Jersey-based Dream on Me won the initial auction held on Thursday for the company’s intellectual property, its bid could be superseded if a higher or better bid emerges for the company as a going concern, court papers show.
Everyday Health Media LLC was selected as the sole backup bidder for the BuyBuy Baby assets. The terms of Dream on Me’s bid have not yet been disclosed.
The company extended the deadline for BuyBuy Baby’s going concern auction to July 7. The auction was originally scheduled for Thursday.
Bed Bath sold its flagship brand this week to Overstock.com Inc. for $21.5 million, after the company was unable to secure another buyer interested in keeping stores open.
The bankruptcy is Bed Bath & Beyond Inc., 23-10574, US Bankruptcy Court for New Jersey (Newark).
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