Overstock.com shares spike 19% after company announces Bed Bath & Beyond website rebrand

Shares of Overstock.com rocketed 19% higher Thursday, a time aft the e-commerce location goods retailer announced it would change its website's sanction to Bed Bath & Beyond aft buying up the fallen retailer's intelligence spot and integer assets via a bankruptcy auction.

Shares were trading northbound of $30 per stock midday, giving Overstock a marketplace valuation of astir $1.3 billion.

Overstock CEO Jonathan Johnson said the Overstock sanction reflected the company's anterior liquidation-based exemplary and didn't align with the benignant of products it present sells.

"We started retired 20-plus years agone arsenic a liquidator and became a wide merchandiser. Now we're a location furnishings and furnishings institution and determination [were] a batch of headwinds with the sanction Overstock, headwinds with customers who were confused who we were and what we were selling, headwinds with suppliers that didn't privation to needfully merchantability if it was associated with liquidation," Johnson told CNBC's "The Exchange."

Bed Bath & Beyond maintains beardown marque awareness, Johnson said, contempt mismanagement and eventual bankruptcy.

The brands already stock overlapping customers, Johnson said, which volition assistance easiness the transition.

"We'll bash this modulation dilatory wherever the Overstock lawsuit volition travel to the caller website and volition admit it, but truthful volition the Bed Bath & Beyond customer. And past implicit time, we'll sunset retired the Overstock feel," helium added.

Johnson said shoppers tin expect Bed Bath & Beyond's famed coupons to unrecorded on, astatine slightest during a transitional period, but noted connected a telephone with analysts earlier Thursday that the institution volition not connection arsenic galore oregon arsenic heavy discounts implicit the agelong term.

"One happening that Bed Bath & Beyond customers volition recognize is that our non-coupon terms is truly good. And I deliberation radical volition beryllium precise amazed with the deals that Overstock and present Bed Bath & Beyond is capable to connection and has been offered," helium said.

The caller Bed Bath & Beyond website is acceptable to beryllium relaunched successful Canada wrong the adjacent week, with a consequent rollout of a website, mobile app and loyalty programme successful the U.S. expected successful the coming weeks.

Overstock shares are up much than 50% truthful acold this year.

Overstock.com shares surge aft announcing website rebrand to Bed Bath & Beyond.