BuyBuy Baby Stores to Go Dark After Bankruptcy Auction Falters

BuyBuy Baby’s stores will shut down after the baby brand — once cast as Bed Bath & Beyond Inc.’s prized asset — garnered no adequate going-concern bids in a bankruptcy auction, according to court papers.

(Bloomberg) — BuyBuy Baby’s stores will shut down after the baby brand — once cast as Bed Bath & Beyond Inc.’s prized asset — garnered no adequate going-concern bids in a bankruptcy auction, according to court papers.

New Jersey-based baby goods company Dream on Me Industries Inc. won a bankruptcy auction for BuyBuy Baby’s intellectual property last month, but advisers kept searching for a buyer for the whole business. A notice posted to Bed Bath & Beyond’s docket late Thursday indicates none emerged. A hearing to approve the intellectual property sale is scheduled for July 11, court papers show. 

The failed sale caps a tumultuous period for BuyBuy Baby and its parent company, which is also shutting down. BuyBuy Baby was a key part of last-ditch efforts to keep Bed Bath & Beyond out of bankruptcy — it was seen a bright spot in an otherwise troubled business. 

Bed Bath & Beyond sold its flagship brand last month to online-only retailer Overstock.com Inc. for $21.5 million. Overstock has since said it will relaunch Bed Bath & Beyond online. 

Representatives for Bed Bath & Beyond didn’t immediately respond to requests for comment. 

The bankruptcy is Bed Bath & Beyond Inc., 23-10574, US Bankruptcy Court for New Jersey (Newark).

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