RIP Overstock.com, sorta: Online giant rejuvenates under Bed, Bath & Beyond branding

Launched in the shadow of the dot com bust almost a quarter of a century ago as an online excess inventory liquidator, and subsequently evolving into one of the world’s largest home goods sellers, Utah-based Overstock.com turned yet another page on Tuesday as it re-branded under the freshly acquired Bed, Bath & Beyond moniker.

Bed, Bath & Beyond declared Chapter 11 bankruptcy in April after dismal sales through last year’s holiday shopping season proved the death-knell for the retailer after a wave of cost-cutting measures failed to reverse years of declining business activity.

But Bed, Bath & Beyond’s widely recognized branding, and deep troves of customer data, proved to be the perfect assets for Overstock to fuel a rejuvenating expansion, leaning on a familiar name, expanded product offerings and a wider customer base.

“This is a historic day for Bed Bath & Beyond and Overstock — and for the broader ecommerce industry,” said Jonathan Johnson, former CEO of Overstock and CEO of the new Bed Bath & Beyond, in a press statement. “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 Bed Bath & Beyond is a much-loved and well-known consumer brand, which had an outdated business model that needed modernizing.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.”

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That bigger and better includes, according to information shared in the company’s recent earnings report, some 600,000 new products since news of the acquisition deal was first reported in early July.

Johnson was making the rounds of national business media outlets in New York City on Tuesday and, in an interview with the Deseret News, noted the inventory expansion was aided by suppliers who previously were hesitant to open up their full product offerings to Overstock but have done an about face under the new branding. Johnson also celebrated being able to move past some of the unfortunate customer perceptions that have followed the Overstock brand well past its days of being an inventory liquidator.

“We’ve ridded ourselves of a boat anchor of a name and ridded Bed, Bath & Beyond of its previous boat anchor of a business model,” Johnson said.

When asked if the change to Bed, Bath & Beyond redefines where Overstock fell in the online retail sector, Johnson said the change really serves to “just make us stronger in our current category.”

“We’ve always been in the business of making our customers’ dream homes come true,” Johnson said. “Now, we’re just offering more avenues to make dream homes come true.”

The company reports the newly reimagined Bed Bath & Beyond will “return to offering the kitchen, bed, and bath-related products customers have grown to love since its inception 30 years ago — in addition to a vast and growing assortment of furniture and other home product categories, including area rugs, lighting, décor, and home improvement, among others.”

The company reports the rebranding launch will include a slew of coupon deals, credits for participants in Bed, Bath & Beyond’s previous loyalty program and additional savings for Overstock’s Club O loyalty program members who will be automatically migrated to the new program for regular customers.

Johnson also plugged a new mobile app and celebrated the success of the rebranding launch in Canada late last month.

“If you liked the Bed Bath & Beyond coupons of the past, you will love our better pricing, special promotions, broader assortment, and the improved customer experience on the website and mobile app,” Johnson said. “We’ve seen strong customer engagement with our BedBathandBeyond.ca Canada business that launched on June 29.”

Assets acquired by Overstock in the bankruptcy auction include Bed, Bath & Beyond’s website and domain names, trademarks, trade names, patents, customer database, loyalty program data and other brand assets related to the Bed Bath & Beyond banner. The U.S. Bankruptcy Court for the District of New Jersey approved Overstock’s winning bid at a sale hearing on June 27.

According to Overstock, the transaction excluded any assets associated with the brick-and-mortar business of Bed Bath & Beyond including store leases, inventory, warehousing and logistics infrastructure. Bed, Bath & Beyond’s Buy Buy Baby and Harmon banners and associated assets are being auctioned off separately.

Bed, Bath & Beyond’s value had been on a downward slope since its stock hit a top price of around $81 per share in early 2014. In April of this year, that stock price had declined to just pennies a share and the company filed for bankruptcy protections. Analysts have pointed to a myriad of missteps by company executives, including a failed shift from third-party products to store branded goods and a massive stock buyback program.

Overstock.com saw a surge of business amid COVID-19 restrictions that provided similar boosts to a wide swath of online retailers. But order volumes have chilled since then. In 2023 first-quarter results reported in April, Overstock saw $381 million in revenues the first three months of the year, a 29% drop from the same period in 2022. Per CNBC, the e-commerce retailer posted a net loss of $10 million. Still, the retailer’s results came in ahead of some estimates from industry watchers.

At the end of regular trading on Monday, shares in Overstock were trading at $36.49, up nearly 20% since the company announced its acquisition of Bed, Bath & Beyond assets.