NEW YORK -- Bed Bath & Beyond will live on. The brand, that is, not the stores.
The retailer's name, intellectual property and digital assets were purchased by Overstock.com for $21.5 million, according to court documents released Thursday. However, the deal won't keep its stores open, which are currently closing after Bed Bath & Beyond filed for bankruptcy in April.
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Overstock's bid was the first and ultimately the most lucrative for Bed Bath & Beyond's assets, setting the minimum price (a.k.a. a stalking horse bid). Ten Twenty Four, a software company, also bid for the Beyond.com domain and will buy it if Overstock's deal falls through.
A hearing is set for next Tuesday to finalize the purchase. Overstock didn't immediately return CNN's request for comment.
The buybuyBaby chain, which Bed Bath & Beyond owns, is being sold off in a separate sales process and is considered the most attractive part of the retailer's assets. Neil Saunders, a retail analyst and managing director at GlobalData Retail, previously told CNN that the buybuyBaby business "is the one part of the operation that will probably attract interest from buyers."
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If the Overstock bid is approved, Bed Bath & Beyond will join a list of collapsed retailers whose brands got a second lease of life - in a very different form. Toys "R" Us, Linens 'n Things, Radio Shack and Pier 1 are just some of companies considered "zombies," where investment firms scoop up the recognizable assets for dirt-cheap prices and hope to revive them, usually online.
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