The attempt of Brand management firm Go Global Retail to save the Buy Buy Baby chain and keep it operational fell through, leading to the closure of the stores, according to CNBC sources.

Despite showing interest in acquiring Bed Bath & Beyond, the parent company of Buy Buy Baby, Go Global Retail, was unable to reach a valuation agreement.

Bed Bath & Beyond's lead creditor, Sixth Street Partners, decided that it would recover more losses by selling Buy Buy Baby's intellectual property, auctioning its leases and proceeding with liquidation sales.

Dream on Me Industries, a little-known New Jersey-based retailer and former supplier to Buy Buy Baby, emerged as the winner in the auction, acquiring the chain's trademark and digital assets for $15.5m.

Valuation differences lead to failed agreement

Go Global Retail CEO Jeff Streader revealed that although his firm had a higher overall offer than Dream on Me, they were unable to agree on a valuation with Sixth Street Partners.

The company's bid did not account for the cost of Buy Buy Baby's intellectual property and additional capital would have been required to keep the stores running if their offer had been accepted.

Streader expressed well wishes for the winners of the intellectual property bid.

Erosion of value impacts auction process

An anonymous source familiar with the matter stated that there was a significant decline in value over the past six weeks, which affected Go Global Retail's bid.

As a result, nearly all that remained for auction were Buy Buy Baby's intellectual property, empty stores, leases and remaining inventory.

Bed Bath & Beyond had repeatedly delayed the bankruptcy-run auction process in hopes of securing higher bids and finding a buyer who would keep the stores operational.

However, the constant delays discouraged potential bidders and investors who required more time to make decisions.

Disappointment as Buy Buy Baby stores prepare to close

During a hearing in federal bankruptcy court, Judge Vincent Papalia approved the sale of Buy Buy Baby's intellectual property to Dream on Me. However, the lack of going concern bids for the chain disappointed the judge and other attorneys present at the hearing.

Bed Bath & Beyond's lawyers expressed their regret at not being able to secure a buyer, acknowledging the disappointment surrounding the closure of the beloved chain.