Retailer Buy Buy Baby, a subsidiary of Bed Bath & Beyond, is set to be auctioned off following its parent company’s bankruptcy. Industry analysts consider Buy Buy Baby to be the most valuable asset of the homeware chain, which is why it will be auctioned separately.
According to CNBC, there is at least one interested bidder eyeing the acquisition of Buy Buy Baby. However, this potential buyer has expressed reservations about maintaining a physical store presence for the brand. At the time of Bed Bath & Beyond’ s bankruptcy filing, Buy Buy Baby operated approximately 120 stores. In the third quarter of 2022, the retailer experienced a decline in sales of over 20%.
Buy Buy Baby was established in 1996 by Richard and Jeffrey Feinstein, who are the sons of Leonard Feinstein, co-founder of Bed Bath & Beyond. The company was acquired by Bed Bath & Beyond in 2007 for $67 million.
Recently, Bed Bath & Beyond was purchased at auction for $21.5 million, resulting in the closure of all its stores and a shift to an online-only presence. Overstock.com, a prominent e-commerce company, now holds the rights to Bed Bath & Beyond’ s name, intellectual property, and assets. Overstock.com, initially known for selling surplus and returned merchandise, has expanded its model to include a wide range of products and is currently valued at approximately $1 billion.
The closure of Buy Buy Baby and the challenges faced by Bed Bath & Beyond reflect a broader trend in the retail industry, often referred to as the “retail apocalypse.” With e-commerce giants like Amazon gaining prominence, traditional brick-and-mortar stores have struggled to adapt.
Bed Bath & Beyond, a well-established presence in the American home goods market since its founding in 1971, now becomes another casualty in this evolving retail landscape.
As the auction for Buy Buy Baby unfolds, the future of the beloved baby retailer hangs in the balance, symbolizing the ongoing transformation within the retail industry as it navigates the digital age.
Written by:
Dana Sterling-Editor
