Baby products company Dream on Me wins rights to acquire BuyBuy Baby’s IP — tentatively

An auction on Thursday for the BuyBuy Baby division of bankrupt Bed Bath & Beyond produced a surprising result.

Bed Bath & Beyond selected Dream on Me, a New Jersey-based company that makes and sells a wide range of baby goods, as the initial winner for the intellectual property of BuyBuy Baby. The news was first reported by Bloomberg. The amount of the bid was not disclosed.

Although Dream on Me won the auction, it could lose the rights if a higher bid emerges for the company as a going concern. 

The auction on Thursday was only for BuyBuy Baby’s intellectual assets. An auction for all of the retailer’s assets, including its stores, is scheduled for July 7.

Everyday Health Media LLC was selected as the sole backup bidder for the BuyBuy Baby assets, the Bloomberg report said.

Bed Bath sold its namesake brand earlier this week to Overstock.com for $21.5 million.