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Bed Bath & Beyond has selected Overstock.com as its "stalking horse" bidder for the intellectual property behind its namesake banner, according to a bankruptcy filing on Tuesday.
Driving the news: The position gives Overstock, an online discount retailer, the ability to get the first bid on Bed Bath's remaining assets.
- Bed Bath confirmed in an email that it received a stalking horse bid from Overstock to the tune of $21.5 million.
- Per the filing, this would be in cash.
Details: According to the filing, that includes all of Bed Bath's IP, goodwill, business data, internet properties, rights to mobile applications and certain contracts.
- Overstock's bid offers a break-up fee equal to 2% of the purchase price, or $430,000, and expense reimbursements of up to 2%.
How it works: The stalking horse bid sets the low-end of the bidding bar for the purchase price, for which other bidders can't go under and allows the company to get more competitive pricing.
What they're saying: "We will continue to solicit bids until the expected bid deadline of Friday, June 16," Bed Bath said in an emailed statement.
- "If additional bids are received, an auction is expected to take place the following week on Wednesday, June 21, to determine the winning bidder."
- The company expects to hold a final sale hearing on June 27.
Catch up fast: Bed Bath & Beyond filed for Chapter 11 bankruptcy in April.
- Bed Bath listed total assets of $4.4 billion and total debt of $5.2 billion as of last November, per court documents.
Overstock couldn’t immediately be reached for comment.
Editor's note: This story has been updated with additional comments and details.
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June 13, 2023 at 11:30PM
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Bed Bath & Beyond names Overstock stalking horse bidder - Axios
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