A United Parcel Service employee loads orders onto a truck in the shipping area of the Overstock.com distribution center in Salt Lake City, Utah.
Ken James | Bloomberg | Getty Images
Overstock. com goes all in on failed retailer Bed Bath & Beyond.
The home goods e-commerce retailer will no longer go online under its namesake name and will instead move under the Bed Bath & Beyond domain name in the coming weeks after acquiring the intellectual property of its bankrupt rival, Overstock announced Wednesday. .
It will relaunch the Bed Bath & Beyond website in Canada in the coming week, followed by a US website, mobile app and loyalty program rollout “weeks later.”
Overstock announced the move when it completed the acquisition of Bed Bath’s intellectual property and digital assets for $21.5 million. The company hopes the brand name will help boost declining sales.
“Bed Bath & Beyond is an iconic consumer brand, well known in the home shopping market,” Overstock CEO Jonathan Johnson said in a statement. “The combination of our winning asset-light business model and the high recognition and loyalty of the Bed Bath & Beyond brand will enhance the customer experience and position the company for accelerated market share growth.”
Despite declining sales, Overstock’s stock is up nearly 32% this year. Overstock shares rose nearly 5% in extended trading on Wednesday and also boomed as it was first revealed to have successfully won the auction for Bed Bath’s assets.
In its first-quarter results in April, Overstock reported revenue of $381 million, down 29% from the same period last year. The e-commerce retailer posted a net loss of $10 million. Still, according to Street Account, the retailer’s results came in ahead of some estimates.
Overstock will not acquire any physical 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.
A number of bidders have expressed interest in the Buy Buy Baby stores, but it remains unclear whether one will be purchased and kept open.