Bombay to liquidate
October 15, 2007-- Home Textiles Today,
Fort Worth, Texas – Weeks after filing for Chapter 11 bankruptcy protection, it looks like The Bombay Company will liquidate in the United States following the holiday season.
The 384-store home furnishings specialty chain has agreed to sell its business operations to a joint venture of Gordon Brothers Retail Partners and Hilco Merchant Resources, two seasoned inventory liquidation firms. The partners submitted the winning bid at auction Oct. 12; the agreement is subject to approval this week by the U.S. Bankruptcy Court for the Northern District of Texas, Fort Worth Division.
Under the terms, the Canadian division of Bombay will be peeled off and continue operations through an acquisition by retailer Bowring and Benix & Co. “Bombay represents 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." Fred Benitah, ceo of Bowring and Benix & Co.
Other Bombay assets, including its U.S. intellectual property rights and its real estate assets, are not part of the proposed transaction.