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Online retailer Overstock will change its name to the recognizable Bed, Bath & Beyond after snapping up the rights to the company after it filed for bankruptcy.
The online home goods store acquired the bankrupt brand’s name, Group domain and loyalty program assets earlier this week for more than $21 million, reported.
Shares in Overstock rocketed almost 15 percent as news of the name change broke.
Canadian shoppers will notice changes first.Overstock plans to overhaul its website with a new look and then follow weeks later with a new experience for US shoppers using the Bed Bath & Beyond branding.
Overstock’s loyalty program, Club O, is also being rebranded as Welcome Rewards, the name of Bed Bath & Beyond’s program.Â
The entrance to a store in Anchorage is seen on the day the retail giant filed for Chapter 11 back in April
The share price of Overstock climbed to just under 15 percent after the news of the name change
Overstock CEO Jonathan Johnson said: ‘This acquisition is a significant and transformative step for us.
‘I’m excited for consumers to experience the new Bed Bath and an even bigger and better Beyond.’Â
The buyout last week came after the e-commerce firm filed for Chapter 11 before attempting to reorganize its assets and pawn them off to the highest bidder.Â
One of these assets which is being auctioned off separately is retailer Buy Buy Baby, which analysts see as the most valuable asset owned by the chain.Â
Buy Buy Baby had approximately 120 stores when Bed, Bath and Beyond filed for bankruptcy.In the third quarter of 2022, sales at Buy Buy Baby declined more than 20%.Â
The company was purchased by Bed Bath & Beyond in 2007 for $67 million.
The buyout from Overstock characteristic of the e-commerce company, whose original business model was exclusively selling surplus and returned merchandise online as it emerged from the digital boom of the late 90s.
The firm eventually widened its model to include first-party products and handmade goods produced by Overstock workers in developing nations, and is worth roughly $1billion today.
It has already liquidated at least 18 failed companies at below-wholesale prices.
The company also manages the supply for other retailers, though Bed, Bath and Beyond will now bringing some much-needed name recognition to its sprawling inventory.
The share price of Bed, Bath and Beyond has plummeted in the last year, in a fall from grace for the big box brand
Store closing signs can be seen at this store in Brooklyn, New York, earlier this year after Bed, Bath and Beyond announced it would be closing stores
The buyer, dot-com juggernaut Overstock.com, now holds all of the rights – and has already liquidated at least 19 failed companies at below-wholesale prices
Notably, the firm narrowed its focus last year from more general merchandise to selling only furniture and related home goods.
In fact, this year marks its first as an online home retailer – with the buying of Bed, Bath and Beyond showing devotion to this new model.
The big box chain is only the latest but not the last brick-and-mortar victim of what experts are calling a ‘retail apocalypse’, and its demise is among the most piercing in recent memory considering its preeminence in the American landscape.
The company was founded in Springfield, New Jersey in 1971, and and has since ubiquitous in the US home goods market.
Its closure, however, signals a wider trend sweeping the US – the long-anticipated dissipation of brick-and-mortar stores, as online giants like Amazon go from strength to strength.