Signs announcing a massive sale at a Buy Buy Baby store in Brooklyn, New York, on February 6, 2023. Stephanie Keith | Bloomberg | Getty Images.
According to CNBC, Buy Buy Baby stores are going to disappear after a failed attempt to save the chain and keep the business afloat. Brand management firm Go Global Retail, the owner of children’s apparel company Janie and Jack, was interested in acquiring the beloved Bed Bath & Beyond chain. However, an agreement on the valuation couldn’t be reached, as stated by Go Global Retail’s CEO, Jeff Streader.
Sixth Street Partners, the lead creditor of Bed Bath & Beyond, decided that it could recover more losses by selling Buy Buy Baby’s intellectual property, conducting lease auctions, and proceeding with liquidation sales. Dream on Me Industries, a lesser-known retailer from New Jersey and a former supplier of Buy Buy Baby, acquired the chain’s trademark and digital assets for $15.5 million when no higher bids were received by Bed Bath & Beyond.
Go Global Retail believed there was still a chance to close the deal as recently as Monday, but ultimately couldn’t agree on a valuation with Sixth Street, according to Streader. While their bid would have been slightly higher than Dream on Me’s, the value of the chain eroded significantly in the last six weeks, as confirmed by a source close to the matter.
Initially, when the auction process began, Go Global Retail was prepared to offer a much higher price. In May, the firm sought an additional $50 million in capital to strengthen its bid. However, after almost three months of liquidation sales, there was very little left to bid on besides intellectual property, empty stores, leases, and remaining inventory.
Bed Bath & Beyond repeatedly delayed and split up the bankruptcy-run auction process for Buy Buy Baby in an attempt to attract higher bids and find a buyer willing to keep the stores operational. Unfortunately, these delays deterred prospective bidders and investors who needed more time to make decisions.
During a hearing in federal bankruptcy court, Judge Vincent Papalia approved the sale of Buy Buy Baby’s intellectual property to Dream on Me. The presence of a smoking staffer from one of the bidders, visible via Zoom, was noted during the hearing. Bed Bath & Beyond’s lawyers expressed their disappointment at not being able to secure a buyer, and Judge Papalia shared in the disappointment that the chain couldn’t be saved.
In conclusion, the once beloved Buy Buy Baby stores will soon disappear, marking the end of an era for this chain.
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