Overstock to relaunch Bed Bath & Beyond: ‘it describes who we are’

Overstock.com Inc (NASDAQ: OSTK) gained 20% on Thursday after announcing plans of changing its name to Bed Bath & Beyond.

Overstock bought BBBY’s intellectual property

The stock market news follows its $21.5 million purchase of intellectual property and digital assets of the failed home goods retailer. According to Jonathan Johnson – the Chief Executive of Overstock.com:

There was a lot of headwind with the name Overstock, with customers, with suppliers. Bed Bath & Beyond is an iconic brand, loyal customers, and it describes who we are.

He confirmed that the company had no plans of buying any brick-and-mortar stores of Bed Bath & Beyond. Overstock had concluded its first financial quarter with $375 million on the balance sheet.

Its shares are now up roughly 60% for the year.

Name change goes live in Canada this week

Overstock will relaunch its website under the Bed Bath & Beyond banner in Canada this week.

In the United States, a new website as well as a mobile app and a loyalty programme will roll out in August. On CNBC’s “The Exchange”, CEO Johnson added:

For us, the brand meant something. We were eager to figure out how to rebrand. We could spend million on picking a new name, or we could buy one that people know and love.

Overstock.com Inc had $10 million of net loss in its first quarter as revenue tanked 29% on a year-over-year basis. Wall Street currently has a consensus “hold” rating on the Nasdaq-listed firm.