Overstock.com (NASDAQ:OSTK) is showing its commitment to rescuing failed retailer Bed Bath & Beyond.
The e-commerce home goods retailer will no longer go by its eponymous name online and will instead move under the Bed Bath & Beyond domain name in the coming weeks after acquiring the bankrupt rival’s intellectual property, Overstock announced Wednesday.
It will relaunch the Bed Bath & Beyond website in Canada within the next week, followed by a rollout of a website, mobile app and loyalty program in the U.S. “weeks later.”
Overstock announced the moves as it completed its $21.5-million acquisition of Bed Bath’s intellectual property and digital assets. The company hopes the brand name will help to lift sagging sales.
“Bed Bath & Beyond is an iconic consumer brand, well-known in the home retail marketplace,” Overstock CEO Jonathan Johnson said in a statement. “The combination of our winning asset-light business model and the high awareness and loyalty of the Bed Bath & Beyond brand will improve the customer experience and position the Company for accelerated market share growth.”
Despite declining sales, Overstock’s stock has surged nearly 32% this year. Overstock shares jumped nearly 5% in extended trading Wednesday and also popped when it was first revealed that it successfully won the auction for Bed Bath’s assets.
OSTK shares gained $3.22, or 12.6%, to $28.76.
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