It’s a tough world out there even if you’re one of the most well-known brands in the entire country, as Bed Bath & Beyond discovered in April of this year. The massive big-box retailer of all things, well, bedroom, bathroom, and beyond fell from being on the Fortune 500 list to filing for bankruptcy in just a few short years, with the last of its many U.S. stores being liquidated last month (aside from in Mexico, where the brand lives on).
Of course, it wouldn’t be a capitalist story without wealthy vultures picking over the bones of people’s livelihoods. Enter Overstock.com, the e-commerce site that’s based in Utah and made a name for itself selling everything you need and plenty of stuff that you don’t. But how are these two companies connected, and why does heading to overstock.com now send you to a website that has “Bed Bath & Beyond” plastered all over it? Read ahead to find out!
What happened to Bed Bath & Beyond?
After years being one of the premiere big box retailers in the States and Canada, things began to unravel for the company in 2019, when its CEO was removed after accusations of nepotism and wasting company funds on businesses run by his friends and family. This led to a number of directors stepping down, as well as a restructuring of the board.
In an attempt to arrest declining sales, the company tightened up their coupon and discount deals, while also trying to move toward own-brand items and concept stores, because nowadays business thinkers believe that branding is more important than actual products or services. Their issues weren’t helped by their links to MyPillow, which is owned by a notorious seditionist, con artist, and verifiable danger to the country (we wish we were joking, but yes, that’s how ridiculous America has become).
While other big box brands saw surging profits during COVID as people turned to online shopping as a coping mechanism, Bed Bath & Beyond continued to falter. Subsidiary brands were sold off, locations were closed, and accusations of a stock pump and dump scheme were thrown about, leading to the suicide of the CFO Gustavo Arnal, likely as he knew he’d be on the hook for the fraud, and when you take money from rich people in the States there are actual consequences for crimes (see: Bernie Madoff and Elizabeth Holmes).
The powers that be did get the usual parasites in to attempt to restructure the business (which in practice means sell off its assets so shareholders wouldn’t lose face, even as thousands lose their jobs), but even the slimiest of lawyers and financial advisers couldn’t save the brand.
How did Overstock get the rights to the Bed Bath & Beyond name and website?
In an auction in June of this year, Overstock purchased the rights to the Bed Bath & Beyond company name, as well as their intellectual property. They secured all of this for just over $20 million dollars, which we’re sure was used to make sure that former Bed Bath & Beyond store workers wouldn’t end up homeless.
Now, a judge has finally approved the purchase, meaning that Overstock can utilize the Bed Bath & Beyond name, website domain, and loyalty program assets, as per CNN. This doesn’t include the actual stores, though, nor any of the brands that were under the original Bed Bath & Beyond umbrella.
Overstock CEO and undoubted victim of childhood bullying for a silly name Jonathan Johnson put out a press release that cooed about the impressive nature of the acquisition, calling it a “significant and transformative step” that merged “the best of both companies into a single online shopping destination under the Bed Bath & Beyond name.” He added that he hoped to combine “the strengths of the Overstock operational model and the Bed Bath & Beyond brand” to create a “powerful synergy.” Yes, people do actually talk like that, and yes, it is corporate nonsense.
He then went on to discuss why he felt the change worked:
“Overstock has a great business model with a name that does not reflect its focus on home. Bed Bath & Beyond is a much-loved and well-known consumer brand, which had an outdated business model that needed modernizing. Through this rebranding, we’re breathing new life into Bed Bath & Beyond, positioning it as an asset-light, ecommerce retailer with an expanded home furnishings and furniture assortment. Think of it as Bed Bath & a much bigger, better Beyond.”
There is some good news for customers, too. In the same press release, it was confirmed that there would be new deals in place:
- A 25% off welcome coupon for anyone who downloads and shops through the new and refreshed Bed Bath & Beyond mobile app, available for iOS and Android.
- Reinstated loyalty points, exclusive coupons, and free membership to the new Welcome Rewards program (a $19.95 value) for active members of the former Bed Bath & Beyond loyalty program.
- 20% off coupon and transfer of membership along with all current rewards for members of Club O, Overstock’s former loyalty program.
- Other money-saving deals on a wide selection of furniture, decor, rugs, and more.
Because the world of finance and money is a joke that’s basically just based on vibes, the price of Overstock shares rose massively following the news, jumping by over 15 percent.
So, what happens next?
For once, Canada will get to experience a cultural event before the States does. Overstock is planning on revamping the Bed Bath & Beyond website, as well as its own, in the Great White North first, combining what they believe to be the best elements of the two companies. An undefined amount of time later (most people in the know are guessing a few weeks), these same changes will be rolled out across the U.S. Overstock’s customer loyalty plan — formerly the suggestively named Club O — is also undergoing a name change. It will now take on the moniker given to the Bed Bath & Beyond loyalty program: Welcome Rewards.
In terms of what will happen to Overstock, many investors are predicting that there will be a boost in sales thanks to the new, ultra-recognizable name the site is taking on. That brand recognition didn’t save the original company from going under, though, so perhaps that’s a bit of an optimistic take.
Although they had the cash for this purchase, Overstock is in need of a boost: after a massive boom in the pandemic, when people couldn’t spend their money on going out or travel so instead flung their dollars at making their homes look nice, the company has suffered from a huge slowdown in furniture and other home goods sales. This isn’t just a problem that’s unique to it, though, as its main rival Wayfair has also been seeing similarly poor financial results. Of course, both companies could have planned for a slowdown as the pandemic was always going to end, but as business leaders are more concerned with making imaginary numbers go up than the state of their products or long-term thinking, that is wishful thinking.
There’s also the chance that this shift could confuse customers, but retail analyst at GlobalData Retail Neil Saunders has a more positive take:
“If handled carefully and with good communication, the rebrand should not alienate existing Overstock customers. It will also ensure that Overstock gains the custom of Bed Bath & Beyond customers and loyalists, which, despite the company’s problems over the past few years, remain extensive.”
He added the change “makes sense,” which one would hope it would, considering Overstock spent $21 million buying the name.
Is anything else being sold off to wealthy investors to gut for profit?
To be short and sweet: yes. Various Bed Bath & Beyond brands and assets were not included in the Overstock deal, including the chain buybuyBaby – which many consider to be a tasty morsel of cash just waiting to be sucked on. We’re not sure who’s going to try and purchase it, but we’re sure they’re terrible.