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Bidz.com is back in business
After purchasing Bidz.com's intellectual property, a team that includes the former CEO's daughter is giving the auction site a second try.
Los Angeles-- After purchasing Bidz.com's intellectual property, a team that includes the former CEO's daughter is giving the auction site a second try.
The new Bidz.com, which was redesigned to be cleaner and more image-driven, functions the same as it did prior to its liquidation--it offers closeout jewelry, watches and select other accessories in an online auction format.
Danielle Zilberg, who also worked with Bidz.com before and helped put the new management team together, said that they have partnered with many of the same vendors to establish the inventory on the site and also have been building new vendor connections as well.
“It was important to us to restart the company and redeem ourselves,” she said. “We are passionate about closeout jewelry and watches, and we believe that everyone should have access to the finer things without the cost. If they loved us once, they’ll love us twice.”
In June 2014, a group of six suppliers and manufacturers owed a total of $1.3 million from Bidz.com filed a Chapter 7 (involuntary) bankruptcy petition against the company in U.S. Bankruptcy Court in Delaware.
Two weeks later, interim CEO Evan Warshawsky filed a declaration in response saying that the company had ceased sales as of June 12 and had already begun liquidating.
On Aug. 19, U.S. Bankruptcy Judge Kevin J. Carey signed an order dismissing the Chapter 7 case, court records show. Insolvency Services Group Inc. was named the assignee in charge of dissolving the company.
Overstock.com purchased Bidz.com’s inventory, estimated to be worth more than $89 million at retail, and launched its Jewelry Liquidation Vault with it.
Hilco Streambank, a firm that specializes in selling intellectual property, was retained to sell Bidz.com’s intellectual property, meaning its name, customer list, domain and software. Hilco announced the sale via auction of the Bidz.com Inc. trademarks, domain names (including both Bidz.com and Buyz.com), and customer data base on Sept. 2.
On Dec. 8, people associated with the original Bidz.com team bought back the site’s IP. They relaunched it the last week of January under new management, which includes Zilberg, as well as Daniella Zinberg, the daughter of former Bidz CEO David Zinberg. Zilberg said David Zinberg serves as an advisor to the current Bidz.com team.
She told National Jeweler that the company, which is headquartered in the St. Vincent Jewelry Center in downtown L.A., is even more focused on watches
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and jewelry than before, as it did not buy back clothing and accessories site Modnique.com, which instead was purchased by TorreyCommerce as the IP sales were done separately.
Additionally, the company did not bring back Buyz.com, its fixed-price site. “We are bringing back Bidz at full force and focusing all of our attention on this business. Buying back Monique, and/or restarting Buyz.com would have deviated us from this goal,” Zilberg said.
--Editor-in-Chief Michelle Graff contributed to this report.
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