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Bankrupt Bed Bath & Beyond Inc. has canceled a going-concern auction for its Buybuy Baby stores but says that a deal for Buybuy Baby’s intellectual property will be put forward for court approval Tuesday.
Bed Bath & Beyond
BBBYQ,
recently announced that Dream on Me Industries Inc. has been selected as the winning bidder for Buybuy Baby’s intellectual-property assets, with a bid of approximately $15.5 million.
Related: Why investors gamble on shares of bankrupt companies — Bed Bath & Beyond, for example
In a statement provided to MarketWatch Monday, Bed Bath & Beyond explained recent developments in the Buybuy Baby sale. “Dream On Me’s initial winning bid for buybuy BABY’s IP was subject to receipt of a higher or otherwise better bid for buybuy BABY as a going-concern, which did not materialize,” the company said. “As a result, the going-concern auction for buybuy BABY was cancelled and the proposed transaction with Dream On Me will be put forward for court approval at a sale hearing currently scheduled for Tuesday, July 11.”
Based in Piscataway Township, New Jersey, Dream on Me sells a range of baby products, including cribs, mattresses and furniture.
Related: Bed Bath & Beyond: From home-goods behemoth to bankruptcy
Late Friday, CNBC reported that the going-concern auction was canceled as a result of bidders backing out after determining that the chain’s assets had depreciated too much, citing unnamed sources described as close to the matter.
Even after Bed Bath & Beyond filed for Chapter 11 bankruptcy protection in April and its stock was delisted from the Nasdaq
COMP,
exchange, investors have continued to trade the stock.
Related: Bed Bath & Beyond investors have spent $200 million trading ‘worthless’ shares — will this holding company help them?
Bed Bath & Beyond’s stock fell 1.3% Monday.
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