A customer carries a BuyBuy Baby shopping bag in New York, US, on Thursday, Aug. 25, 2022. Bed Bath & Beyond Inc. is looking to mortgage its prized Buybuy Baby brand in its urgent effort to raise financing as sales slump, cash runs low and unpaid vendors withhold shipments. Photographer: Gabby Jones/Bloomberg
By Jeremy Hill | Bloomberg
BuyBuy Baby’s stores will shut down after the baby brand — once cast as Bed Bath & Beyond’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.
SEE MORE: Bed Bath & Beyond is coming back, in name only, after Overstock buys brand
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.
Originally published at Bloomberg