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A Piscataway-based company that makes and sells a range of baby goods reportedly emerged as the tentative winner for the intellectual property of Buybuy Baby.

During a June 29 auction for bankrupt retailer Bed Bath & Beyond‘s baby-focused banner, Dream On Me Inc. bid $15.5 million to acquire the chain’s trademark, domain, mobile platform and business data, CNBC reported. 

Founded by Mark Secure in 1987, Dream On Me has grown to become one of the most trusted baby care brands in the U.S., selling cribs, strollers, mattresses and nursery furniture through several retail partners, such as Target and Amazon.

Along with its signature Dream On Me line, the company’s brands include Evolur Baby, Sweetpea Baby, TailZzz, Hannah & Sophia and Slumber Baby.

A court hearing is scheduled for July 11 to approve Dream On Me’s bid for the intellectual property.

Additionally, since no buyers were interested in taking over the entire Buybuy Baby business as a going concern, Bed Bath & Beyond canceled an auction that was scheduled for July 7. Now, the retailer will instead seek approval for a more limited sale of the intellectual assets, Bloomberg reported.

A representative from Dream On Me did not immediately respond to a request for comment from NJBIZ.

Since Bed Bath & Beyond opted to run a separate process for Buybuy Baby, and then divvy up the process in a reported attempt to secure a higher bid price, the June 29 proceedings were for intellectual property online.

Everyday Health Media LLC, a New York City digital media company that produces health and wellness content, was named as sole backup bidder for the intellectual rights, Bloomberg reported.

While Dream On Me won the auction for the intellectual property, its bid could be superseded if a higher or better offer emerges for the company as a going concern.

Buybuy Baby was launched in 1996 by the sons of Bed Bath & Beyond co-founder Leonard Feinstein and considered to be the crown jewel of the retailer’s portfolio. CNBC reported earlier this month that an unknown bidder was interested in keeping 75% of Buybuy Baby’s stores open, but needed an additional $50 million in capital to shore up its proposal. It is not clear if that bidder is still in the race, but the outlet noted that it demonstrates how much an entity might need to purchase the entire business.

Jersey strong

If Dream On Me winds up securing the assets, it would be the second New Jersey-based company to benefit from Bed Bath & Beyond’s demise.

During a June 26 auction, South Jersey-based off-price retailer Burlington Stores Inc. scooped up 44 shuttered locations for $12 million. Outside of the auction process, Burlington secured six additional leases for $1.53 million, bringing the total number of stores acquired to 50.

Altogether, 153 properties – a mix of Bed Bath & Beyond’s namesake store and its Buybuy Baby brand – were brought to auction; however, successful bids went through for only 109 sites, enabling the embattled retailer to pull in $24.41 million.

Besides Burlington, other top bidders 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.

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.

E-commerce site Overstock.com’s all-cash $21.5 million bid for Bed Bath & Beyond’s name, intellectual property and digital platforms was also approved last week by a U.S. bankruptcy judge in Newark, the venue where the retailer filed for Chapter 11 protection at the end of April.

After debuting a new Bed Bath & Beyond website in Canada, Overstock plans to launch a refreshed online presence, mobile app and loyalty program in the U.S. in coming weeks.

Editor’s note: This story was updated at 1:46 p.m. July 7, 2023, to include more information about the next steps for Buybuy Baby and Dream On Me.