• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Editor's Pick Buy Buy Baby stores set to shutter as Go Global’s deal to save the chain falls apart at the eleventh hour
Editor's Pick

Buy Buy Baby stores set to shutter as Go Global’s deal to save the chain falls apart at the eleventh hour

by July 16, 2023
by July 16, 2023 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

Buy Buy Baby’s stores are set to disappear after a last ditch effort to save the chain and keep the business alive fell apart, CNBC has learned. 

Brand management firm Go Global Retail, which owns children’s apparel company Janie and Jack, was eager to buy the beloved Bed Bath & Beyond chain and keep it running, but ultimately couldn’t reach an agreement on valuation, the firm’s CEO Jeff Streader told CNBC. 

Lender Sixth Street Partners, Bed Bath & Beyond’s lead creditor, determined it could recover more of its losses than what Go Global was willing to offer by selling Buy Buy Baby’s intellectual property, auctioning off its leases and moving ahead with liquidation sales. 

Dream on Me Industries, a little-known New Jersey-based retailer and one of Buy Buy Baby’s former suppliers, won the chain’s trademark and digital assets for $15.5 million after Bed Bath & Beyond failed to receive any higher bids. 

Go Global believed there was a path to close as recently as Monday, but in the end, it couldn’t agree on a number with Sixth Street, Streader said. 

“We were being fair in our offer. Sixth Street was not unreasonable but there was a difference in opinion on valuation,” he said. “We wish the IP bid winners success in their journey.” 

In total, Go Global’s offer had a higher dollar amount than Dream on Me’s, but not by much because “there was a huge erosion of value in the last six weeks,” according to a person close to the matter, who spoke on the condition of anonymity because they were not authorized to discuss the matter publicly. 

If the firm’s offer was accepted, it would’ve needed to put up additional capital at the time of the sale to keep stores running and the way its bid was constructed didn’t factor in the cost of Buy Buy Baby’s intellectual property, said another person close to the matter. While Sixth Street would’ve preferred to keep stores open, Bed Bath didn’t receive a viable bid to allow that, said the person.

When the auction process first began, Go Global was prepared to offer a “substantially higher” price, said one of the people. In May, the firm was seeking an additional $50 million in capital to shore up its bid, CNBC previously reported. 

However, nearly three months into liquidation sales at Buy Buy Baby’s 120 stores, there was very little left to bid on besides its IP, empty stores, leases and whatever inventory was left, said the source. 

For the past several weeks, Bed Bath & Beyond has repeatedly pushed back and split up the bankruptcy-run auction process for Buy Buy Baby so it could secure higher bids and find a firm that was willing to keep stores running. 

However, each time the auction was pushed back, it was only delayed by about a week or so, which “definitely deterred prospective bidders or investors,” said the source. 

“Most people cannot move that quickly,” the source added. 

During a hearing in federal bankruptcy court in Newark, New Jersey, on Tuesday, Judge Vincent Papalia approved the sale of Buy Buy Baby’s intellectual property to Dream on Me as one of the bidder’s staffers, who appeared virtually via Zoom for the hearing, was seen smoking a cigarette on screen. 

Bed Bath & Beyond’s lawyers said it was “unfortunate” they weren’t able to secure a buyer as Papalia and other attorneys present for the hearing expressed their disappointment that the chain couldn’t be saved. 

“I share in the disappointment for the lack of going concern bids,” said Papalia. 

“It’s a shame, I guess both parts are not going forward and that is disappointing. I had higher hopes going in but sometimes, those hopes aren’t realized.”  

More from CNBC

Disney could soon sell its TV assets as CEO Bob Iger says business ‘may not be core’ to the company Disney pulling back on making Marvel, Star Wars content, Iger says DeSantis’ claims that Disney sexualizes children are ‘preposterous,’ Iger says

This post appeared first on NBC NEWS
You Might Also Like
  • Largest U.S. sportsbooks join forces to tackle problem gambling
  • Taylor Swift agreed to FTX partnership, but the crypto exchange bailed, source tells CNBC
  • Inflation is driving up consumer credit card debt by billions of dollars
  • Grocery stores are rationing eggs as supply falls and prices rise
Share
0
FacebookTwitterPinterestWhatsapp

previous post
The five most stressed-out U.S. cities are all run by Democrats: study
next post
Stay Ahead Of The Curve To Make More Money

You may also like

Disney tops quarterly profit estimates, but starts to lose Disney+...

February 5, 2025

Grocery stores are rationing eggs as supply falls and prices...

February 14, 2025

Federal Reserve fines Walmart-linked Green Dot Corp $44 million after...

July 22, 2024

Tesla recalls 120,000 vehicles over potentially faulty doors that could...

December 23, 2023

More than 300,000 air fryers sold at Walmart, Target and...

December 21, 2023

Target doubles bonuses for salaried employees as profits surge

March 25, 2024

UAW announces new strike locations as walkout enters second week

September 26, 2023

AMC bets on premium screens as Hollywood slate boasts big...

April 1, 2025

Is it time to rethink the 4% retirement withdrawal rule?...

May 15, 2024

Rush orders, cut costs, crossed fingers: How small businesses are...

December 2, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Dick’s Sporting Goods stands by full-year guidance — even with tariffs looming

      May 28, 2025
    • Top Sectors to Watch + The 18 SMA Setup Every Trader Should Know

      May 28, 2025
    • Macy’s CEO says retailer will hike some prices as tariffs cut into profits

      May 28, 2025
    • 23andMe to delist from Nasdaq, deregister with SEC

      May 28, 2025
    • Walmart fined for shipping realistic toy guns to New York, violating state law

      May 28, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,763 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,470 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,449 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,427 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,305 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,101)
    • Investing (538)
    • Stock (2,576)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Dick’s Sporting Goods stands by full-year guidance — even with...

      May 28, 2025
    • Top Sectors to Watch + The 18 SMA Setup Every...

      May 28, 2025
    • Macy’s CEO says retailer will hike some prices as tariffs...

      May 28, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,101)
    • Investing (538)
    • Stock (2,576)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Amazon increases average pay for warehouse...

    September 19, 2024

    Mimiq Chooses The Helium Network to...

    January 4, 2023

    Next Meters Selects Sequans Monarch 2...

    February 21, 2023
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here