Buy Buy Baby stores will close after a year.
last ditch effort
CNBC learned that the efforts to save the chain from collapse and maintain the business fell apart.
Go Global Retail was keen to purchase the popular children's clothing company Janie and Jack.
Bed Bath & Beyond
Jeff Streader, CEO of the company, told CNBC that he tried to keep the chain running but couldn't come to an agreement about valuation.
Lender Sixth Street Partners was the lead creditor of Bed Bath & Beyond. It determined that it could recover its losses more than what Go Global would offer by auctioning Buy Buy Baby’s leases, moving forward with liquidation sales, and selling Buy Buy Baby’s intellectual property.
Dream on Me Industries is a small New Jersey retailer that was one of Buy Buy Baby’s former suppliers.
The chain trademark was won
Bed Bath & Beyond did not receive any other bids for digital assets.
Streader stated that Go Global thought there was a way to close the deal as recently as last Monday. However, they couldn't come up with a number for Sixth Street.
We were fair with our offer. Sixth Street wasn't unreasonable, but there were differences of opinion about valuation. "We wish the IP winners success on their journey."
According to a source close to the situation, who spoke on condition of anonymity as they weren't authorized to speak publicly about the matter, Go Global had an offer that was higher in dollar value than Dream on Me, but only by a small amount.
A person familiar with the situation said that if the bid was accepted by the firm, they would have needed to provide additional capital to run the stores. The way the bid was structured did not factor in the intellectual property of Buy Buy Baby. Bed Bath did not receive a bid that would have allowed them to do so, even though Sixth Street had preferred to keep the stores open.
One of the people said that when the auction first started, Go Global was willing to offer a price'substantially greater'. In May, Go Global was looking for an additional
Capital of $50 Million
CNBC reported previously that the company was attempting to strengthen its bid.
Source: After nearly three months of liquidation sales, Buy Buy Baby 120 stores had very little to offer except for its IP, vacant stores, leases, and what inventory was left.
Bed Bath & Beyond is offering a special deal on select items.
The group was repeatedly pushed and separated
The bankruptcy-run auction for Buy Buy Baby was run to secure higher bids, and to find a firm willing enough to keep the stores open.
The source said that each time, the auction was delayed, it only took a few days, which "definitely discouraged potential bidders and investors."
The source said that most people can't move so quickly.
During a hearing on Tuesday in Newark's federal bankruptcy court, Judge Vincent Papalia granted the sale of intellectual property of Buy Buy Baby to Dream on Me. One of the staffers of the bidder, who appeared virtually on Zoom during the hearing, could be seen smoking a cigarette on the screen.
Bed Bath & Beyond lawyers expressed regret that they were unable to find a buyer. Papalia, as well as other attorneys who attended the hearing, also expressed disappointment at the failure of the chain to be saved.
Papalia said, "I share the disappointment over the lack of bids for going concerns."
It's a pity, both parts of the project aren't moving forward. That's disappointing. I had high hopes, but sometimes those hopes don't come true.