Mattress Tub & Past, the home-goods retailer that filed for bankruptcy in April, accepted a $21.5 million bid from Overstock.com to accumulate its property, in accordance with a court filing on Thursday.
“Following completion of the court-approved public sale course of and in session with the official committee of unsecured collectors, Mattress Tub & Past Inc. has chosen a proposal from Overstock.com because the successful bidder,” Julie Strider, a Mattress Tub & Past spokeswoman, stated in an announcement.
Overstock will obtain Mattress Tub & Past’s property, which embody its mental property, enterprise information, rights to cellular apps and sure contracts, Ms. Strider stated. Overstock will “assume sure specified liabilities,” she added.
Overstock, the net retailer identified for promoting massive furnishings like couches and desks, declined to remark. Overstock’s inventory rose 9.8 p.c in noon buying and selling.
The acquisition will must be authorized by the court docket throughout a listening to on Tuesday in america Chapter Court docket for the District of New Jersey.
The deal doesn’t have an effect on Mattress Tub & Past plans for its namesake shops, that are set to shut by the tip of the month.
In keeping with the submitting, Mattress Tub & Past had accepted Overstock’s “stalking horse bid,” which means that it made the primary bid on Mattress Tub & Past’s property.
Overstock has been increasing its dwelling décor and small equipment choices lately as shopper demand for big-ticket purchases has come down from its pandemic highs. Mattress Tub & Past’s downturn in 2022 offered Overstock with a chance to court docket the beleaguered retailer’s distributors, Jonathan Johnson, the chief govt of Overstock, has stated.
It was simply one in all a number of corporations that has been scrambling to win over Mattress Tub & Past’s distributors, actual property and clients within the two months for the reason that retailer stated it will wind down operations after greater than 50 years.
Overstock’s acquisition of Mattress Tub & Past’s mental property might embody patents, logos and company names. A bankrupt retailer promoting its mental property permits it to dwell on in some kind as a result of the client can then market the model. That has been the case with Toys ‘R’ Us, which filed for chapter 2017 and located new life as a resurrected model.
Bidders are additionally seeking to purchase components of BuyBuy Child, which Mattress Tub & Past owns. That may happen in a separate public sale subsequent week and the successful bidder might attempt to maintain these shops open.