Signs stating everything is on sale at a Buy Buy Baby store in the Brooklyn borough of New York, Feb. 6, 2023.
Stephanie Keith | Bloomberg | Getty Images
Buy Buy Baby’s stores are set to disappear after a last ditch effort to save the chain and keep the business alive fell apart, CNBC has learned.
Brand management firm Go Global Retail, which owns children’s apparel company Janie and Jack, was eager to buy the beloved Bed Bath & Beyond chain and keep it running, but ultimately couldn’t reach an agreement on valuation, the firm’s CEO Jeff Streader told CNBC.
Lender Sixth Street Partners, Bed Bath & Beyond’s lead creditor, determined it could recover more of its losses than what Go Global was willing to offer by selling Buy Buy Baby’s intellectual property, auctioning off its leases and moving ahead with liquidation sales.
Dream on Me Industries, a little-known New Jersey-based retailer and one of Buy Buy Baby’s former suppliers, won the chain’s trademark and digital assets for $15.5 million after Bed Bath & Beyond failed to receive any higher bids.
Go Global believed there was a path to close as recently as Monday, but in the end, it couldn’t agree on a number with Sixth Street, Streader said.
“We were being fair in our offer. Sixth Street was not unreasonable but there was a difference in opinion on valuation,” he said. “We wish the IP bid winners success in their journey.”
Go Global’s bid would have been higher than Dream on Me’s, but not by much because “there was a huge erosion of value in the last six weeks,” according to a person close to the matter, who spoke on the condition of anonymity because they were not authorized to discuss the matter publicly.
When the auction process first began, Go Global was prepared to offer a “substantially higher” price, said the source. In May, the firm was seeking an additional $50 million in capital to shore up its bid, CNBC previously reported.
However, nearly three months into liquidation sales at Buy Buy Baby’s 120 stores, there was very little left to bid on besides its IP, empty stores, leases and whatever inventory was left, said the source.
For the past several weeks, Bed Bath & Beyond has repeatedly pushed back and split up the bankruptcy-run auction process for Buy Buy Baby so it could secure higher bids and find a firm that was willing to keep stores running.
However, each time the auction was pushed back, it was only delayed by about a week or so, which “definitely deterred prospective bidders or investors,” said the source.
“Most people cannot move that quickly,” the source added.
During a hearing in federal bankruptcy court in Newark, New Jersey, on Tuesday, Judge Vincent Papalia approved the sale of Buy Buy Baby’s intellectual property to Dream on Me as one of the bidder’s staffers, who appeared virtually via Zoom for the hearing, was seen smoking a cigarette on screen.
Bed Bath & Beyond’s lawyers said it was “unfortunate” they weren’t able to secure a buyer as Papalia and other attorneys present for the hearing expressed their disappointment that the chain couldn’t be saved.
“I share in the disappointment for the lack of going concern bids,” said Papalia.
“It’s a shame, I guess both parts are not going forward and that is disappointing. I had higher hopes going in but sometimes, those hopes aren’t realized.”
Why immigration has strengthened the economy
Chaotic aid delivery turns deadly as Israeli, Gazan officials trade blame
Dave Myers – updates: Si King leads tributes as Hairy Bikers stars dies aged 66
One Independence officer killed, one hurt in shooting
Apple orders 10 episodes of a Neuromancer TV series
The Mystery of Partner ‘Convergence’
The 5 Best Skin Care Products You Can Buy at Costco, According to a Dermatologist
17 Women Share the Reasons They Stopped Wearing Makeup
This Is What a 37-Year-Old Face Without Filters or Makeup Actually Looks Like
9 Best Yoga Bags for Every Type of Practice in 2024
Elvis Openly Flirted With Female Reporters
Google’s Deal With StackOverflow Is the Latest Proof That AI Giants Will Pay for Data
Michael Weatherly, Cote de Pablo Return to ‘NCIS’ Universe In New Streaming Spinoff
New security law worries foreign firms in Hong Kong – Asia Times
Nintendo Sues Makers of the Wildly Popular Yuzu Emulator
News23 hours ago
A little-noticed inflation report in the past could get a lot of market attention on Thursday
Tech23 hours ago
Neuromancer Is Finally Getting Its Long-Awaited Adaptation
News23 hours ago
Westlife star Mark Feehily reveals he is QUITTING the band after falling ill with sepsis – as they prepare to embark on first ever US tour: ‘I wish things could be different’
News23 hours ago
‘The Challenge’ Season 39 Reunion Includes Fights Between These Cast Members
Tech23 hours ago
That moment when you land on the Moon, break a leg, and are about to topple over
News10 hours ago
Here’s where to get the best deals for leap day 2024
Tech9 hours ago
13 Brutal Stories From People Swindled By Elon Musk Impersonation Scams
News24 hours ago
New York lawmakers push bill cutting down on plastic packaging across state