After the American chain of retail stores, Bed, Bath & Beyond filed for bankruptcy and appealed to Chapter 11 for its sale, a United States bankruptcy judge on Tuesday approved the purchase by Overstock for $21.5 million.
In a court hearing in Newark, New Jersey, Judge Vincent Papalia ruled that the sale of the brand will be for the chain’s intellectual property and e-commerce platform, while stores and inventory are not part of the deal.
In recent months, Bed Bath & Beyond had secured some financing to stay afloat for the sale of its inventory and the closure of some of its stores while it settled the case with the moneylenders.
For that reason, the judge said he was “pleased” that a bidder persevered to purchase the Bed Bath & Beyond brand. After the sale, the retailer announced that it will hold an auction for the Buy Buy Baby chainwhich has already attracted the interest of some investment firms such as: Sixth Street Partners and Go Global Retail.
In this sense, the company’s lawyer, Emily Geier, highlighted that the retail chain is closing hundreds of lease agreements, which has caused satisfactory progress in terms of its stores.
Although the sale has marked a good start for the retailer, Bed Bath & Beyond must still reach negotiations with its lenders for the $240 million it obtained at the beginning of its bankruptcy case. According to the statements of some bondholders, the company provided inaccurate financial information that led to the loan being larger than it actually needed.
Source: La Opinion