Overstock.com, a prominent online furniture and home furnishings retailer based in Silicon Slopes, has completed its acquisition of certain intellectual property assets from the Bed Bath & Beyond banner, owned by Bed Bath & Beyond, Inc. The acquisition was carried out under the supervision of a Bankruptcy Court. Overstock CEO Jonathan Johnson described the acquisition as a significant and transformative step for the company, stating that the combination of Overstock's asset-light business model and the strong brand recognition and customer loyalty of Bed Bath & Beyond will enhance the customer experience and contribute to accelerated market share growth.
Moving forward, Overstock will be found online under the Bed Bath & Beyond name. Overstock plans to relaunch the Bed Bath & Beyond domain in Canada shortly, followed by a refreshed website, mobile app, and loyalty program in the United States a few weeks later. This move aims to provide new and existing customers of both Overstock and Bed Bath & Beyond with a unified online shopping destination: bedbathandbeyond.ca in Canada and bedbathandbeyond.com in the U.S., offering a wide range of quality furniture and home furnishings products at various price points to suit every budget.
Overstock specializes in selling indoor and outdoor furniture, home décor, area rugs, and other home furnishing products. Through this acquisition, customers of Bed Bath & Beyond will gain access to Overstock's extensive and expanding assortment of products, including kitchen, bedding, and bath-related items, which have been the cornerstone of Bed Bath & Beyond's offerings for over three decades.
As part of the acquisition, Overstock will rebrand its Club O loyalty program as Welcome Rewards. The program will continue to offer 5% reward dollars for all purchases, which can be fully redeemed in future transactions.
The assets acquired from Bed Bath & Beyond include website and domain names, trademarks, tradenames, patents, customer database, loyalty program data, and other brand assets associated with the Bed Bath & Beyond banner. The U.S. Bankruptcy Court for the District of New Jersey approved Overstock's winning bid for these assets on June 27, 2023.
It's important to note that the transaction does not include any assets related to Bed Bath & Beyond's physical stores, such as leases, inventory, warehousing, or logistics infrastructure. Additionally, the Buy Buy Baby and Harmon banners and their respective assets are not part of the transaction.
Overstock funded the $21.5 million acquisition entirely with its existing cash reserves. As of March 31, 2023, the company reported having $374.7 million in cash and cash equivalents.
