Overstock.com rebrands web site as Mattress Tub & Past
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 looks at failed retailer Bed Bath & Beyond.
The e-commerce retailer of homewares will no longer operate online under its eponymous name and will instead operate under the domain name Bed Bath & Beyond in the coming weeks after acquiring the bankrupt rival’s intellectual property, Overstock announced on Wednesday.
Within the next week, the Bed Bath & Beyond website will be relaunched in Canada, followed by the launch of a website, mobile app and loyalty program in the US “weeks later”.
Overstock announced the moves as the company completed its $21.5 million acquisition of Bed Bath’s intellectual property and digital assets. The company hopes the brand name will help boost declining sales.
“Bed Bath & Beyond is an iconic consumer brand well known in home retail,” Overstock CEO Jonathan Johnson said in a statement. “The combination of our successful asset-light business model and the high awareness 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, also rising sharply on news that the company had successfully won the auction for Bed Bath’s assets.
In its April first-quarter results, Overstock reported revenue of $381 million, down 29% from the prior-year period. The e-commerce retailer posted a $10 million net loss. The retailer’s results still beat some estimates, according to Street Account.
Overstock will not acquire any brick-and-mortar Bed Bath stores as part of the transaction. The failed housewares retailer has held 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 Buy Buy Baby’s stores, but it remains unclear if any will be bought and remain open.