Bed Bath & Beyond names Overstock stalking horse bidder - Axios

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Bed Bath & Beyond has selected Overstock.com as its "stalking horse" bidder for the intellectual property behind its namesake banner, according to a bankruptcy filing on Tuesday.

Driving the news: The position gives Overstock, an online discount retailer, the ability to get the first bid on Bed Bath's remaining assets.

Bed Bath confirmed in an email that it received a stalking horse bid from Overstock to the tune of $21.5 million.
Per the filing, this would be in cash.

Details: According to the filing, that includes all of Bed Bath's IP, goodwill, business data, internet properties, rights to mobile applications and certain contracts.

Overstock's bid offers a break-up fee equal to 2% of the purchase price, or $430,000, and expense reimbursements of up to 2%.

How it works: The stalking horse bid sets the low-end of the bidding bar for the purchase price, for which other bidders can't go under and allows the company to get more competitive pricing.

What they're saying: "We will continue to solicit bids until the expected bid deadline of Friday, June 16," Bed Bath said in an emailed statement.

"If additional bids are received, an auction is expected to take place the following week on Wednesday, June 21, to determine the winning bidder."
The company expects to hold a final sale hearing on June 27.

Catch up fast: Bed Bath & Beyond filed for Chapter 11 bankruptcy in April.