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Buy Buy Baby Intellectual Property Acquired by Dream on Me Industries
Tentative Win for Dream on Me Industries
Dream on Me Industries, a baby retailer based in Piscataway, New Jersey, has tentatively won the auction for the intellectual property of Bed Bath & Beyond's crown jewel, Buy Buy Baby. Court records filed on Thursday reveal that Dream on Me Industries secured the rights to assets such as Buy Buy Baby's trademark and domain in an auction held on Wednesday. The exact price of the winning bid has not been disclosed.
Split Sale Process
Bed Bath & Beyond, the parent company of Buy Buy Baby, decided to split up the sale process in an effort to obtain a higher bid price. Consequently, the auction held on Wednesday was only for Buy Buy Baby's intellectual property. Another auction, scheduled for July 7, will be held to sell all of Buy Buy Baby's assets, including its physical stores. This means that Dream on Me's win for the intellectual property is still tentative, as it could be outbid at the upcoming auction.
Backup Bidder and Bankruptcy
Everyday Health Media was selected as a backup bidder for Buy Buy Baby's intellectual property if Bed Bath & Beyond receives a higher bid. Since declaring bankruptcy in late April, Bed Bath & Beyond has been focused on selling its assets at the highest possible price. The company has faced delays in the auction process as it worked to secure buyers. Interest has been particularly strong in Buy Buy Baby, which has long been considered the most valuable part of Bed Bath & Beyond's business.
Uncertainty and Offloading
However, as the auction approached, doubts began to grow about the number and size of bids, adding to the uncertainty surrounding the sale process. CNBC previously reported on concerns regarding the auction. Bed Bath & Beyond has already sold its namesake banner to Overstock.com for $21.5 million. Overstock.com plans to rename its website as Bed Bath & Beyond but opted not to acquire Bed Bath & Beyond's physical stores and inventories.
Conclusion: Potential Impact on New Businesses
The acquisition of Buy Buy Baby's intellectual property by Dream on Me Industries has the potential to impact new businesses in the baby retail industry. While Dream on Me Industries has tentatively won the auction for the intellectual property, the upcoming auction for Buy Buy Baby's physical stores could still change the outcome.
For new businesses entering the baby retail market, this acquisition signifies the potential consolidation of existing players. Dream on Me Industries, if successful in securing both the intellectual property and physical stores of Buy Buy Baby, would gain a significant advantage in terms of brand recognition and customer base. This could make it more challenging for new businesses to establish themselves and compete effectively in the market.
Furthermore, the sale process and bankruptcy of Bed Bath & Beyond highlight the uncertainties and challenges faced by businesses in the retail industry. The delays in securing buyers and doubts regarding the number and size of bids raise questions about the overall health of the retail sector. New businesses entering this industry should carefully consider these factors and ensure they have solid financial backing, a unique value proposition, and a clear market differentiation strategy.
In conclusion, the acquisition of Buy Buy Baby's intellectual property by Dream on Me Industries could result in increased competition and consolidation within the baby retail industry, potentially posing challenges to new businesses aiming to establish themselves. It serves as a reminder of the volatile nature of the retail sector and the importance of strategic planning and financial stability for new ventures.
Article First Published at: https://www.cnbc.com/2023/06/29/buy-buy-baby-dream-on-me-baby-retailer-wins-auction-for-ip.html
