NEW YORK, June 27 Reuters A U.S. bankruptcy judge on Tuesday approved Overstock.com39;s 21.5 million purchase of Bed Bath Beyond39;s brand name, intellectual property and ecommerce platform.

U.S. Bankruptcy Judge Vincent Papalia approved the sale at a court hearing in Newark, New Jersey, saying that he was gratified to see a bidder emerge that would preserve Bed Bath Beyond39;s brand.

Overstock emerged as the winning bidder for the company39;s intellectual property in a deal worth 21.5 million, court filings showed on Thursday. Bed Bath Beyond stores and inventory are not part of the deal.

Once a storied retailer, Bed Bath Beyond filed for Chapter 11 bankruptcy protection in April after struggling for years with dwindling sales and a failed merchandising strategy.

Bed Bath Beyond is hosting a separate auction starting tomorrow for its Buy Buy Baby chain, which sells products for infants and toddlers. The Buy Buy Baby assets have attracted interest from investment firms Go Global Retail and Sixth Street Partners, according to media reports.

Bed Bath Beyond is also making good progress in winding down its store footprint, and it is finalizing hundreds of lease transfer agreements after a successful lease auction yesterday, the company39;s attorney, Emily Geier, told Pappalia.

Bed Bath Beyond39;s negotiations with its lenders have not gone as smoothly, and the company will be back in court tomorrow to defend the 240 million loan it took out at the start of its…