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Buybuy Baby will close all of its stores in the United States after a last-minute deal to save the retailer from bankruptcy fell apart. Buybuy Baby was owned by Bed Bath & Beyond.
Investment firm Go Global was trying to reach a deal to acquire the 120 Buybuy Baby stores across the country. That deal fell apart as they could not agree on a price with Bed Bath & Beyond's lead creditor, Sixth Street Partners. Instead, a bankruptcy judge approved a sale of Buybuy Baby's intellectual property for $15.5 million to Dream on Me Industries, a New Jersey-based company that used to supply products to the retailer.
"We were being fair in our offer. Sixth Street was not unreasonable, but there was a difference in opinion on valuation," he said. "We wish the IP bid winners success in their journey," Go Global CEO Jeff Streader told CNBC.
Sixth Street Partners decided it could recover a greater share of its losses by selling off the intellectual property, auctioning off its existing leases, and through liquidation sales.