A United Parcel Service worker loads orders onto a truck in the shipping area at the Overstock.com distribution center in Salt Lake City, Utah.
Ken James | Bloomberg | Getty Images
Overstock.com all going to failed retailer Bed Bath & Beyond.
The e-commerce home goods retailer will no longer use its eponymous name online and will instead move under the Bed Bath & Beyond domain name in the coming weeks after acquiring the bankrupt rival’s intellectual property, Overstock announced Wednesday.
It will relaunch the Bed Bath & Beyond website in Canada within the next week, followed by the launch of the website, mobile app and loyalty program in the US “weeks later.”
Overstock announced the moves as it completed the $21.5 million acquisition of Bed Bath’s intellectual property and digital assets. The company hopes the brand name will help lift sagging sales.
“Bed Bath & Beyond is an iconic consumer brand, well-known in the home retail marketplace,” Overstock CEO Jonathan Johnson said in a statement. “The combination of our winning asset-light business model and the high awareness and loyalty of the Bed Bath & Beyond brand will enhance the customer experience and position the Company for accelerated market share growth.”
Despite the decline in sales, Overstock’s stock is up nearly 32% this year. Overstock’s shares jumped nearly 5% in extended trading on Wednesday and also emerged when it first announced it had successfully won the auction for Bed Bath’s assets.
In its first quarter results in April, Overstock reported $381 million in revenue, a 29% decrease from the year-earlier period. The e-commerce retailer posted a net loss of $10 million. However, the retailer’s results came in ahead of some estimates, according to Street Account.
Overstock will not acquire any brick-and-mortar Bed Bath stores as part of the deal. The failed home goods retailer is hosting a series of auctions for its myriad assets, including its store leases and assets from its Buy Buy Baby banner.
Several bidders have expressed interest in the Buy Buy Baby stores but it remains unclear whether any will be purchased and remain open.
