Big retail brand makes a post-bankruptcy comeback

According to The Street , The concept of going out of business and being liquidated has evolved significantly in recent years. Today, a brand’s legacy often doesn’t end with liquidation—it can be revived and rebranded, sometimes creating what are known as “zombie brands” that continue to capitalize on the popularity of their original names.

For example, Sharper Image, once a trendy destination for cool gadgets and office novelties, closed its iconic stores but resurfaced as a lower-end product line leveraging its name recognition. Similarly, Toys R Us, after declaring bankruptcy and closing its doors, has been resurrected in various forms, including within Macy’s stores. While the in-store experience is far from what fans once loved, the name still carries weight, making it more meaningful than a generic toy section in a department store.

Another major shift in business closures happened with Bed Bath & Beyond, which was swiftly purchased by former Overstock.com executives after it closed its doors. Rather than reviving the chain’s physical retail stores, the company bought the name and rebranded the Overstock website to “Beyond” while planning new directions for the business. Now, the company is setting its sights on reviving another once-prominent brand—Zulily.

Zulily, an online retailer catering mostly to mothers and children, did not formally declare bankruptcy but took a drastic step in December 2023 by entering into an Assignment for the Benefit of Creditors (ABC). This allowed it to liquidate assets without court intervention, angering customers who had orders pending. Despite the liquidation, Zulily’s brand name was not lost—Beyond, which had also faced its own financial struggles, acquired the Zulily name and announced plans to bring it back.

Marcus Lemonis, Executive Chairman of Beyond, shared during a second-quarter earnings call that the company had already made significant strides in revamping Zulily’s operations. With over 100 legacy vendors secured and another 100 suppliers in the onboarding process, the website was entering internal testing in preparation for its relaunch. Lemonis confirmed that Beyond planned to relaunch Zulily on September 10, 2023.

David Nielsen, CEO of Beyond, further emphasized the importance of bringing back Zulily with experienced former staff who are familiar with the brand’s customer base and vendor relationships. The relaunch will feature a combination of flash sales and a selection of evergreen essentials, all available through a membership model, ensuring that the revived brand will be profitable and sustainable.

Zulily’s comeback under Beyond represents a broader trend of companies reusing valuable brand names even after the original business model has failed. While these “zombie brands” might not be the same as their former selves, they can still benefit from the lasting consumer recognition that their names bring.