NEW YORK (AP) — Mattress & Tub & Past will stay on, on-line at the very least, after Overstock.com acquired the bankrupt retail chain’s mental property belongings for $21.5 million.
The web retailer Overstock.com is dumping its title on-line and can turn out to be Mattress & Tub & Past, which declared chapter earlier this 12 months. Overstock.com’s CEO Jonathan Johnson informed The Related Press in a telephone interview on Thursday that the corporate is contemplating altering its company title however received’t make any selections till after it digests the belongings.
The switcheroo to a really recognizable model was cheered on Wall Road. Shares of Overstock.com Inc., based mostly in Midvale, Utah, soared almost 20% throughout afternoon buying and selling Thursday.
The deal doesn’t embrace Mattress Tub & Past shops, the final of that are anticipated to be shuttered Friday, or the Buybuy Child chain.
The title change will roll out in Canada subsequent month and in August, a relaunch of the corporate’s web site and cell app as Mattress Tub & Past will seem within the U.S. These visiting overstock.com might be redirected to bedbathandbeyond.com.
The title Overstock nonetheless confuses some prospects and suppliers who thought it was a liquidator. That’s the way it acquired its begin in 1999. It remodeled in 2004 right into a basic merchandise retailer, promoting all kinds of things. In 2021, Overstock finetuned its technique to give attention to furnishings and residential decor, eliminating gadgets like clothes.
When Mattress Tub & Past’s monetary woes deepened final 12 months, Overstock.com tried to courtroom the retailer’s suppliers but it surely met with some skepticism. However after its bid for Mattress Tub grew to become public final week, it was in a position so as to add 100,000 mattress and tub gadgets to its website, Johnson mentioned. He expects that tempo will decide up.
“I can’t rely what number of occasions we have been requested once we have been going to alter the corporate title,” he mentioned. “This chance is simply too good to be true. We’re Mattress Tub and a much bigger past.”
Johnson mentioned that it’ll provide some coupons to cater to the Mattress Tub & Past prospects who have been used to the favored perk, however he famous that prospects might be shocked that the reductions supplied by Overstock.com are literally higher on an day by day foundation. He additionally added that Overstock plans to step up advertising to Mattress Tub & Past prospects to make them conscious of the change.
He estimated Overstock.com has about 5 million prospects; Mattress Tub & Past’s on-line prospects quantity about 10 million.
Mattress Tub & Past — one of many authentic massive field retailers identified for its seemingly infinite choices of sheets, towels and kitchen devices — filed for chapter safety in April. The submitting adopted years of dismal gross sales and quite a few makes an attempt to show the flailing enterprise round.
