Bed, Bath & Beyond Lives On! (Line); Overstock.com Buys Rights to Bankrupt Retailer, Renames

After Overstock.com buys the bankrupt retail chain’s intellectual property for $21.5 million, Bed Bath & Beyond will still be around, at least online.

Online retailer Overstock.com ditched its name online to become Bed Bath & Beyond, which declared bankruptcy earlier this year.

The switch to a very well-known brand was cheered on Wall Street. Shares of Midvale, Utah-based Overstock.com surged 20%.

The deal does not include Bed, Bath & Beyond stores or the Bye Bye Baby chain, whose last store is expected to close on Friday.

The name change will roll out in Canada next month, and in August the company’s website and mobile app will relaunch as Bed Bath & Beyond and appear in the United States. Users visiting ovestock.com are redirected to bedbathandbeyond.com.

“Combining Overstock’s operating model with the strengths of the Bed, Bath & Beyond brands will create powerful synergies,” said Jonathan Johnson, CEO of Overstock.com. said in a prepared statement. “We look forward to helping consumers experience the new Bed Bath and an even bigger and better Beyond.”

Bed Bath & Beyond, one of the original blockbuster retailers known for its endless supply of sheets, towels and kitchenware, filed for bankruptcy protection in April. The filing comes after years of dismal sales and numerous attempts to revive a struggling business.