A little-known baby retailer based in Piscataway, New Jersey, has tentatively won the auction for the intellectual property of Bed Bath & Beyond’s crown jewel Buy Buy Baby, court records filed Thursday say.
Dream on Me Industries, which sells cribs, strollers and other baby goods through a host of retail partners, won the rights to assets such as Buy Buy Baby’s trademark and domain after an auction Wednesday, according to the records. The price of the winning bid was not disclosed.
Wednesday’s auction was only for Buy Buy Baby’s intellectual property, after its parent company Bed Bath & Beyond decided to split up the sale process in an apparent effort to secure a higher bid price. Another auction for all of Buy Buy Baby’s assets, including its many stores, will be held July 7, the records say.
Dream on Me’s win is only tentative. If Bed Bath & Beyond receives a higher bid at the upcoming auction, it could lose the rights to Buy Buy Baby’s intellectual property.
Everyday Health Media, a digital media company that produces health and wellness content, was selected as a backup bidder.
Since it declared bankruptcy in late April, Bed Bath & Beyond has been determined to sell its assets at the highest price possible. The company has repeatedly pushed back several auctions as it worked to secure buyers.
Interest has centered around Buy Buy Baby, long considered the most valuable part of Bed Bath & Beyond’s business. But the sale process is increasingly uncertain after doubts grew in the days ahead of the auction about the number and size of bids, CNBC previously reported.
The company already offloaded its namesake banner to Overstock.com for $21.5 million. The e-commerce retailer, which plans to change its website name to Bed Bath & Beyond, opted out of acquiring Bed Bath’s stores and inventories.