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After Bed Bath & Beyond auctioned off its store leases as part of its bankruptcy proceedings, South Jersey-based off-price retailer Burlington Stores Inc. scooped up dozens of shuttered locations.

During a June 26 auction, the embattled home goods store selected bidders for 109 of its leases, with Burlington set to take over 44 sites for $12 million, CNBC reported.

Outside of the auction process, Burlington secured six additional leases for $1.53 million, bringing the total number of stores acquired to 50, according to the report.

Several other retailers also nabbed leases for the former Bed Bath & Beyond stores, which commercial real estate experts have described as top-notch retail properties that are in highly visible, heavily trafficked areas. 

With limited new retail estate construction since the 2008 financial crisis, the availability of the leases comes at a time when vacancy rates for shopping centers have reached some of their lowest levels in 15 years and presents a unique opportunity for companies looking to expand in the retail landscape.

Other top bidders in Bed Bath & Beyond’s auction include craft retail chain Michaels, which paid $2.55 million for nine stores, and retail furniture company Haverty Furniture Cos. Inc., which shelled out $468,334 for four leases.

Additionally, 37 landlords also assumed leases, CNBC reported.

During the auction, Bed Bath & Beyond reportedly pulled in $24.41 million. It will use a portion of those proceeds for unpaid rent at the locations, while the rest will go to pay off creditors.

Altogether, 153 properties – a mix of Bed Bath & Beyond’s namesake store and its Buybuy baby banner – were brought to auction this week; however successful bids went through for only 109 sites.

The retailer has said another round of auctions could take place and that, depending on what happens with the outcome of Buybuy Baby’s assets, those leases could be removed from the list.

Following its bankruptcy filing in April, the once-storied Union-headquartered company began liquidating its 360 Bed Bath & Beyond stores and 120 Buybuy Baby locations nationwide in anticipation of winding down operations by the end of June.

Earlier this week, a U.S. bankruptcy judge in Newark approved e-commerce site Overstock.com’s all-cash $21.5 million bid for Bed Bath & Beyond’s name, intellectual property and digital platforms. Overstock plans to debut a new Bed Bath & Beyond website in Canada in the coming days, followed a few weeks later by the relaunch of a refreshed online presence, mobile app and loyalty program in the U.S.

Overstock Chief Executive Officer Jonathan Johnson described the acquisition as “a significant and transformative step,” saying, “Bed Bath & Beyond is an iconic consumer brand, well-known in the home retail marketplace. 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.”

More than great coats

Meanwhile, Burlington, formerly known as Burlington Coat Factory, has been busy expanding its brick-and-mortar footprint, as well as working to improve the overall off-price model through marketing, merchandising and store protoypes to drive growth. Its strategy also incudes strengthening vendor counts, investing in technology and boosting merchandising capabilities.

The retailer, which sells branded apparel, footwear, accessories and home goods at discounted prices, has more than 800 stores throughout the U.S. and Puerto Rico.

A representative for Burlington did not immediately respond to request for comment.

During a first quarter earnings call last month, Burlington’s chief executive officer Michael O’Sullivan said the retailer expects to launch 70 to 80 new net stores in 2023.

He also noted that Burlington has picked up leases from many now defunct retailers, including Circuit City, Toys R Us, Sports Authority and Linens ‘n Things, and expects future bankruptcies will “have a significant impact on the availability of attractive new store locations.”

O’Sullivan added that some of Burlington’s “best stores were created from carved up Kmart or Sears locations,” crediting its real estate team and its track record of turning bankruptcies into growth opportunities, saying they have expertise in “assessing the suitability and evaluating the potential economics of locations that emerged from these types of bankruptcies and then negotiating for or going after those.”