Changing your company name is always risky business, yet we have seen it done by two major players in the last couple of years. Google became Alphabet, and Facebook became Meta. Of course, some of us will probably continue using Google and Facebook the rest of our lives, if only because that’s what we were accustomed to using, but at least in the stock market, they are now Alphabet and Meta.
But what about when you ditch your established name for that of a business that just filed bankruptcy? That’s what Overstock dot com is doing. They paid $21.5 million for the intellectual property rights of Bed Bath & Beyond, which includes the name. As for Bed Bath & Beyond, they are liquidating anything and everything that might have residual value, because there are still creditors to be paid.
Scratching My Head
And in one of the biggest head-scratching moments I’ve had in a long time, they are taking on the name of that chain. No brick and mortar stores, just the IP. The updated website launches in Canada soon, followed by the US.
Basically, Overstock, which has endured its own woes and sales declines, thinks the BBB name is worth more than its own, that by taking on this new moniker they will be able to turn the ship around. They are betting there is more brand equity in the BBB name than in Overstock. Furthermore, they believe there is more equity in the name alone than all of BBB’s stores and inventory depth could leverage in the first place.
Analyze This
Let’s see. Buy the name of a failed retail concept, and then give it another whirl. It’s actually not a new idea, because Retail Ecommerce Ventures (REV) has been scooping up retail brands for several years now, and relaunching them as Dotcom enterprises. Their holdings include Tuesday Morning (which recently shuttered), Pier 1, Dress Barn, Stein Mart, Linens-N-Things, and more. So Overstock is not alone in having faith in brand names, even if we the consumers did not have faith in the company in its entirety.
Bed Bath & Beyond died a very painful death, drowning in debt, and weighted down in both inventory and real estate. Worse yet, as it became painfully apparent the company was swirling down the drain, its vendors started cutting them off. I recall going into the Amarillo BBB while it was still open, and noticed large gaps along the shelves. They could not get replacement inventory once they did sell something. It looked painful, and I bet it was tough having to report to work there every day. It was depressing.
Dead Or Not?
I am still unsure why Overstock thinks its own name is dead. Is Wayfair giving them that much of a run for their money? I recall many of us giving Prince a hard time in 1993 when he changed his name to a symbol. An unpronounceable symbol, mind you. He became “The artist formerly known as Prince.” What was he thinking? He already had the perfect brand.
I am not ready to make predictions on Overstock…I mean the new BBB—just yet. I was never really a regular of either, and probably won’t be in the future, unless they start charting some new territory. Overstock will have to re-educate its customers about the name change (simple enough with a redirect in the HTML code if you type the old name), as well as training people to know that this isn’t their grandma’s Bed Bath & Beyond anymore. It’s Overstock, meaning otherwise unsellable merchandise on its first trip through the agora, now at bargain basement prices.
I’ll be watching, because this is an unusual move regarding names, but not unusual in the relaunch. As for Alphabet and Meta, they are both tearing it up in the stock market right now. Maybe it really isn’t all in the name.
Dr “Good Luck With This” Gerlich
