All eyes are on Bed Bath & Beyond (OTCMKTS:BBBYQ) stock ahead of its stalking horse deadline on June 8. A report from The Wall Street Journal that e-commerce company Overstock (NASDAQ:OSTK) is interested in making a deal for the intellectual property of the embattled retailer is making the rounds as well.
According to people close to the matter, Overstock would set up a deal that would involve the closure of Bed Bath & Beyond’s remaining brick-and-mortar stores. The company is in talks with Bed Bath & Beyond, although nothing has been set in stone yet.
Overstock did not respond to a WSJ request for additional comment.
BBBYQ Stock: Bed Bath Fields Draws Interest From Potential Buyers
Meanwhile, Go Global Retail, the private-equity owner of children’s clothing brand Janie and Jack, is reportedly bidding to acquire Bed Bath subsidiary Buybuy Baby. Buybuy has been a major bright spot for Bed Bath, despite the turmoil surrounding the parent brand. In 2021, the company posted double-digit revenue growth, although comparable-store sales have slowed down recently.
Last week, it was reported that there were at least two interested bidders for Buybuy. Babylist, a direct-to-consumer baby-registry platform, was identified as one of the potential bidders. Babylist CEO Natalie Gordon confirmed that her company was interested in buying the trademark and domain of the brand.
The other potential bidder remains anonymous. However, their identity has been described as an “independent operator with several successful, complimentary retail chains in their portfolio.” This description led to unconfirmed speculation that the bidder may be GameStop (NYSE:GME) Chairman Ryan Cohen. Ankura Capital Advisors is reportedly the advisor to the unknown bidder, who seeks to purchase Buybuy Baby “as a going concern” while keeping 75% of its stores open.
Key Dates for the Bed Bath & Beyond Auction
As previously mentioned, the stalking horse deadline for some or all of Bed Bath’s assets falls on June 8. A stalking horse bid acts as a reserve bid that cannot be undercut. After that, the final bid deadline will fall on June 14. The auction, if necessary, will occur on June 16. On June 23, a sale hearing will occur to consider the approval of the final bid or bids.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
