Dream On Me Inc., a Piscataway-based baby goods retailer, was given the green light by a bankruptcy judge to purchase Buybuy Baby‘s trademark and digital assets for $15.5 million.

During a July 11 federal court hearing in Newark – the venue where the company filed for Chapter 11 protection at the end of April – Judge Vincent Papalia signed off on the sale of Buybuy Baby to one of its former vendors.

Dream On Me, which sells cribs, strollers, mattresses and nursey furniture through major retailers like Amazon and Target, emerged as the tentative winner late last month for Bed Bath & Beyond‘s baby-focused banner.

After failing to find a buyer to take on Buybuy Baby’s stores as a going concern, the Union-based company cancelled an auction that was scheduled for July 7 and opted to seek approval for a more limited sale of the intellectual assets to Dream On Me.

Launched in 1996 by the sons of Bed Bath & Beyond co-founder Leonard Feinstein, Buybuy Baby was considered to be the crown jewel of the retailer’s portfolio. According to CNBC, retail investment firm Go Global Retailer – the owner of children’s clothing label Janie and Jack – was interested in purchasing the chain and maintaining a physical presence for Buybuy Baby, but was unable to reach a deal on valuation.

“The loyalty and trust that customers have in buybuy BABY is extraordinary, and we are committed to continue honoring their legacy of offering quality and solution-oriented products at parent-friendly prices,” Dream On Me Chief Executive Officer Mark Serure said in a July 14 statement.

“The future of buybuy BABY is bright, and the team at D.O.M is committed to ensuring that buybuy BABY remains the go-to destination for all parents, caregivers, and families seeking thoughtfully designed and quality baby and child-focused products, and exceptional customer service,” Serure added.

At this week’s federal bankruptcy court hearing in Newark, Bed Bath & Beyond’s lawyers, as well as Papalia, expressed their disappointment that a buyer could not be secured and that the chain will not survive, CNBC reported.

Meanwhile, Bed Bath & Beyond has taken several key steps in recent weeks to unwind its 52-year-old business.

In late June, e-commerce site Overstock.com’s all-cash $21.5 million bid for Bed Bath & Beyond’s name, intellectual property and digital platforms was given the go-ahead by Papalia.

Since then, Overstock has debuted a new Bed Bath & Beyond website in Canada and expects to launch a refreshed online presence, mobile app and loyalty program in the U.S. soon.

As for the company’s vast brick-and-mortar footprint, Bed Bath & Beyond is in the process of auctioning off its 250 namesake stores and 120 Buybuy Baby locations.

Editor’s note: This story was updated at 8:33 a.m. July 17, 2023, to include a statement from Dream On Me.