Several companies have reportedly been interested in BuyBuy Baby, and so far one of its vendors, Dream On Me Industries, has offered what could be the winning bid for its brand.
The manufacturer of baby gear like cribs and bassinets was the successful bidder at a Wednesday auction of BuyBuy Baby’s IP, according to documents filed with the bankruptcy court.
Everyday Health Media is the runner up, per the documents. An auction for the rest of BuyBuy Baby’s assets is scheduled for July 7 and could yet produce an offer on the IP that tops Dream On Me’s bid, which was not revealed.
BuyBuy Baby has been one of Bed Bath & Beyond’s strengths, one reason why activist investors last year pressured the company to sell it off.
Analysts had seen the baby goods business as the most likely to attract a buyer, and now that’s happening within the Chapter 11 process. Bed Bath & Beyond opted to hold a separate auction for the banner. This week, even that was split up, starting with the auction of BuyBuy Baby’s IP. Previously, baby registry company Babylist expressed interest and made an undisclosed offer.
It’s not clear whether Dream On Me is also interested in BuyBuy Baby’s other assets, or how it will leverage the banner’s IP if its offer ultimately prevails. Dream On Me didn’t immediately respond to a request for comment.
The company, based in Piscataway Township, New Jersey, sells through a number of retailers, including Walmart, Kohl’s and Target.
What is clear is that, despite these retailers’ struggles, their brands still hold weight. Home goods e-retailer Overstock.com, for example, will rebrand as Bed Bath & Beyond, after winning that IP for $21.5 million last week.
BuyBuy Baby had 120 locations and Bed Bath & Beyond had 762 stores in April, when the company filed for Chapter 11 protection. The company moved to close its entire chain of 50 Harmon beauty stores earlier this year ahead of that filing.