Overstock had acquired Bed Bath's intellectual property and digital assets for $21.5 million.Overstock has decided to rename its online store. After the deal with Bed Bath & Beyond is finalized, it will move to the domain name of the same name. According to the company's press office, the Canadian site will be relaunched as Bed Bath & Beyond in the coming days, while in the U.S., the mobile app and loyalty program will be relaunched within a few weeks.
It was previously reported that Overstock had acquired Bed Bath's intellectual property and digital assets for $21.5 million. The company expects the update will improve sales, which have been falling lately.
"Bed Bath & Beyond is an iconic consumer brand, well-known in the home retail marketplace," Overstock CEO Jonathan Johnson said. "The combination of our winning asset-light business model and the high awareness and loyalty of the Bed Bath & Beyond brand will improve the customer experience and position the Company for accelerated market share growth."
Since the beginning of the year, Overstock's stock has risen nearly a third in value despite declining revenues. Following the announcement that Bed Bath & Beyond won the auction, the company's securities added another 5%. Overstock's first-quarter 2023 revenue was down 29% to $381 million, and the net loss was $10 million.
As part of the deal, Bed Bath & Beyond's retail stores remained outside its perimeter. It is unknown if a buyer will be found for the retailer's assets or if the stores will be permanently closed.