Overstock.com Wins Bid To Acquire Bankrupt Bed Bath & Beyond

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According to the New York Times, if the acquisition of Bed Bath & Beyond by Overstock.com is approved at bankruptcy court next week, the company will own the intellectual property of the bankrupt home goods retailer.

Questions:

  1. How much did Overstock.com’s stock price rise with the announcement?
  2. Why has Overstock been expanding into home décor and small appliance offerings?
  3. Why is the issue of owning intellectual property so important?
  4. What does intellectual property include?
  5. How will intellectual property be recorded in the financial records? Include account classification and potential journal entries.
  6. What other store did Bed Bath & Beyond own that will be auctioned off separately?

Source:

Holman, J. (2023) Overstock.com Wins $21.5 Million Bid for Bed Bath & Beyond’s Assets. The New York Times, June 23 (Retrievable online at https://www.nytimes.com/2023/06/22/business/bed-bath-beyond-overstock-bankruptcy.html