The beloved store chain has struggled for a while, yet there's still some good news for its fans.
It seems that famous store names never really disappear. For instance, even though Bed Bath & Beyond has shut down and stopped doing business, the company that used to be known as Overstock.com has bought the name and is bringing it back to life.
Bed Bath & Beyond's Fate Not Unique Among Retail Giants
In June 2023, Overstock.com invested $21.5 million to acquire the intellectual property and digital assets of Bed Bath & Beyond. This strategic move allowed Overstock to adopt the well-known Bed Bath & Beyond brand, merging it with their own to form a single online shopping destination.
Starting in August 2023, anyone visiting Overstock.com will automatically be redirected to BedBathAndBeyond.com.
Jonathan Johnson, the CEO of Overstock, shared with NBC News that the aim behind this acquisition and brand change is to blend Overstock's business approach with the familiar and trusted Bed Bath & Beyond name, enhancing the shopping experience for customers.
This story isn't just about Bed Bath & Beyond. It's a familiar tale in the retail world, where brands that once declared bankruptcy and shut their doors have made unexpected returns under new ownership. However, these comebacks often involve little more than the name itself being reused.
When you see a "Going Out of Business" sign, it might seem like the end for a beloved store. However, the story doesn't always stop there.
For example, the Sharper Image brand continues to sell merchandise, though the products now bear little resemblance to the innovative gadgets the brand was once known for. This trend highlights the value of a recognizable brand name, even when the products change significantly.
Also Read: Soft Surroundings Announces Nationwide Store Closures, Shifts Focus to Online Sales
Several well-known retail brands have followed this path. FAO Schwarz, The Limited, Wet Seal, American Apparel, Circuit City, and HHGregg reemerged after their original incarnations fell. The new iterations of these brands often share little more than the name with their predecessors.
This phenomenon is akin to naming a new pet after one that has passed away; while the name might evoke fond memories, the essence of the original is irreplaceably unique.
Soft Surroundings Closes Stores, Files for Bankruptcy
In September 2023, Soft Surroundings, a well-liked women's clothing retailer, sought Chapter 11 bankruptcy protection. At the time, the company managed 44 stores across 24 states but has decided to shut its physical locations.
As part of its bankruptcy proceedings, Soft Surroundings has made arrangements to sell its brand to Coldwater Creek, another retailer that operates exclusively online.
The company has also arranged for $18 million in financing from Gordon Brothers to keep running its operations smoothly during this transition. This financial support, pending court approval, ensures Soft Surroundings can continue to pay its employees, maintain its vendor relationships for new goods and services, and fulfill other financial obligations as it restructures.
While the press release from Soft Surroundings didn't explicitly state that Coldwater Creek would close all physical stores, it suggested that Soft Surroundings would transition to an online-only brand.
This move mirrors Coldwater Creek's existing digital-only business model, indicating a future where Soft Surroundings continues to serve its customers through e-commerce and direct-to-consumer channels.
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