Bombay Company to close all U.S. stores
Bankruptcy auction winners will keep Canadian units open
By Clint Engel -- Home Accents Today, 10/15/2007 8:11:00 AM
The Bombay Company said it will liquidate all its U.S. stores but keep the Canadian units open under an auction deal that seeks bankruptcy court approval this week.
The Fort Worth, Texas-based company, which filed for Chapter 11 bankruptcy protection Sept. 20, did not say in a statement how much the debtor would receive under the winning bid, which involves liquidators Hilco Merchant Resources and Gordon Bros., and Canadian furniture, housewares and gifts retailer Bowring and Benix & Co.
Bombay said it will submit the agreement for U.S. Bankruptcy Court approval early this week and expects to begin store closings this week, too.
Its other assets, including U.S. intellectual property rights and real estate assets, are not part of the proposed deal, the retailer said.
Bombay sells online and through 384 stores. According to Furniture/Today’s latest Top 100 — when it the company 441 stores as of Feb. 3 — 57 of those units were in Canada.
“This is a difficult day for Bombay in the United States, but we are glad that we have found a solution that will help provide most of our U.S. employees with continued work through the all-important holiday season, while also preserving the Bombay name and continuing the company’s successful Canadian operations,” Bombay CEO David Stewart said in the release.
He thanked the company’s employees “who have remained committed to serving our loyal customers during these most difficult days.”
Fred Benitah, CEO of Bowring and Benix, said Bombay is “one of the most respected retail brands in Canada, and the acquisition of Bombay Canada complements our existing Bowring and Benix brands, strengthening our position as Canada’s leading home retailers.”
-- Furniture Today
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