BIG NEWS: Big retail brand makes a post-bankruptcy comeback
Going out of business and being liquidated doesn’t hold the same weight it once did. Today, brands with any level of name recognition often find themselves resurrected, leading to the phenomenon of “zombie brands” that capitalize on the nostalgia and popularity of their predecessors.
The Sharper Image Example
Take Sharper Image, for instance. While all its trendy, engaging stores have shut down, the name has been revived for a range of lower-end games, gadgets, and office novelties, leveraging the brand’s once-cool reputation.
The Toys R Us Comeback
Toys R Us is another notable example. After declaring bankruptcy and liquidating, the brand has undergone multiple iterations. Its name persists, now appearing in various forms, including the toy section at Macy’s. Although the experience is far from what loyal fans once enjoyed, the recognizable name offers more allure than an unbranded toy section.
Bed Bath & Beyond’s Quick Turnaround
Bed Bath & Beyond’s liquidation was almost immediate. Its intellectual property was swiftly acquired by the former Overstock.com, which purchased the brand name without plans to reinstate its retail operations. Recently, the company has adjusted its strategy, reviving its website and shortening its name to Beyond, with plans to relaunch another notable brand.
The Return of Zulily
Zulily, once a high-flying online retailer aimed at mothers and children, never officially declared bankruptcy but laid off most of its staff and shut down distribution facilities. In December 2023, Zulily and its parent company entered an Assignment for the Benefit of Creditors (ABC), transferring its assets for liquidation, which frustrated many customers left waiting for unshipped orders.
Despite this rocky transition, Beyond, which has faced its own financial challenges, has acquired the Zulily name and plans a comeback.
Plans for Relaunching Zulily
During its second-quarter earnings call, Beyond Executive Chairman Marcus Lemonis detailed the revitalization efforts. “We completed the architecture and POV on Zulily, signed over 100 legacy vendors, and are currently onboarding another 100 suppliers,” he stated. The relaunch is slated for September 10.
CEO David Nielsen added that they’ve brought on experienced merchants familiar with Zulily’s customer base and vendor relationships. The relaunch will feature exciting flash sales alongside a steady assortment of essential items, requiring a member login and aiming to boost profitability.
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