3B home furnishing giant announced the cancellation of its Buy Buy Baby auction

It is learned that on July 7, according to the Wall Street Journal, American home furnishing giant Bed Bath & Beyond announced that it would cancel the auction of the physical assets of its baby store chain Buy Buy Baby originally scheduled for Friday due to failure to receive a higher bid.

Last week, Bed Bath & Beyond reached a preliminary agreement to sell the intellectual property rights of BuybuyBaby to baby products retailer DreamOnMeIndustries for $15.5 million. The 3B giant originally planned to hold another auction on Friday, July 7 to obtain a higher bid, but ultimately did not receive one.

The final acquisition will be finalized on Tuesday, and Bed Bath & Beyond may still accept BuyBuyBaby's offer before then, when a court hearing will approve the sale of BuyBuyBaby's intellectual property to DreamMeIndustries.

There was much speculation that the company would be able to secure a significant offer at BuybuyBaby, long considered Bed Bath & Beyond's crown jewel. The baby chain has been liquidating sales of its 120 stores since its parent company filed for bankruptcy protection on April 23.

BuybuyBaby did receive bids from multiple parties, including baby registry site Babylist and baby product maker and former BedBath supplier DreamMe Industries, which selected DreamMe as the initial bidder for the brand in late June.

In the past few weeks, BedBath & Beyond has repeatedly delayed and split up the bankruptcy auction process of BuyBuyBaby in order to obtain higher bids. However, as BuyBuyBaby's inventory gradually dwindled, the value of the brand also declined. A person familiar with the matter said that in the nearly three-month liquidation sale, there was almost nothing left to bid except the brand's intellectual property.

According to previous reports by CNBC, Go Global Retail, a brand investment company represented by Ankura Capital Advisors, has been interested in continuing to operate about 75% of Buy Buy Baby stores and had sought an additional $50 million in capital to support its bid. The company is already involved in the baby business and currently owns children's clothing company Janie and Jack.

If the auction goes ahead, the bids likely won’t be much higher than the $15.5 million DreamMe paid for its brand intellectual property, as its remaining assets are only its employees, vacant stores, leases and remaining inventory.

Editor✎ Ashley/

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