Bed Bath & Beyond cancels Buy Buy Baby auction

Bed Bath & Beyond has canceled its auction of Buy Buy Baby and will seek U.S. court approval for a more limited sale of its business’s intellectual property assets, according to a notice filed on Thursday in New Jersey bankrupt court.

Bed Bath & Beyond had previously announced Dream On Me as a lead bidder for the brand’s intellectual property on June 29, but continued seeking buyers that would take over the entire Buy Buy Baby business.

Dream On Me, a New Jersey-based baby products retailer, has agreed to pay $15.5 million for Buy Buy Baby’s intellectual property, including the company’s brand name, sales data, websites, and mobile apps, court documents state.

There has been no bidder offering a higher bid than Dream On Me, so Bed Bath & Beyond canceled the auction that was scheduled for Friday.

Bed Bath & Beyond will be seeking the approval of the Buy Buy Baby IP sale at a court hearing on July 11.

Bed Bath & Beyond has been pursuing the same strategy for its own intellectual property, selling its name, customer data, and online assets to Overstock.com for $21.5 million.

Overstock will rebrand as an online-only version of Bed Bath & Beyond without acquiring any of the bankrupt retailer’s stores or inventory.

Bed Bath & Beyond filed for Chapter 11 bankruptcy protection in April after struggling with dwindling sales and a failed merchandising strategy.