Shares of Overstock.com (OSTK) experienced a rise on Tuesday following the approval of the company’s $21.5 million bid to acquire the assets of bankrupt retail chain Bed Bath & Beyond Inc.
U.S. Bankruptcy Court Judge Vincent Papalia granted the sale’s approval during a hearing in New Jersey on Tuesday afternoon. Judge Papalia expressed satisfaction that the winning bidder would preserve the Bed Bath & Beyond brand.
The sale encompasses Bed Bath & Beyond’s brand name, intellectual property, and online platform, but does not include its physical stores or inventory. A separate auction for Bed Bath & Beyond’s BuyBuy Baby chain will take place on Wednesday.
Overstock’s bid was disclosed last Thursday, causing a significant 20% surge in its share price. On Tuesday, the stock further increased by 4.4% during regular trading and an additional 4.2% in after-hours trading. Over the past month, Overstock shares have risen approximately 27%.
On Monday, Bed Bath & Beyond’s over-the-counter stock (BBBYQ) surged 40% following news of the retailer’s substantial reduction in debt. The home-goods chain filed for bankruptcy in April and has been closing stores across the country.
