Bombay to close U.S. stores

FORT WORTH, Texas The Bombay Company today announced that a joint venture of Gordon Brothers Retail Partners and Hilco Merchant Resources has submitted the winning bid at the auction for Bombay's business operations, which contemplates a liquidation of Bombay's U.S. stores. According to the company, under the agreement, Bombay's Canadian stores will continue to operate.

According to the companies, the agreement between Bombay and the Joint Venture will be submitted to the U.S. Bankruptcy Court for the Northern District of Texas, Fort Worth Division, and a hearing to consider approval of the agreement is expected to be held early next week. In addition, The Bombay Furniture Company of Canada, a wholly-owned subsidiary of Bombay, will seek acceptance of this successful bid from the Ontario Superior Court of Justice early next week.

"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," said David Stewart, ceo of Bombay. "Over the coming weeks and months, our U.S.-based employees will work closely with the Joint Venture to prepare, stock and operate the stores during the holiday season. I want to thank all of our hard-working, dedicated employees who have remained committed to serving our loyal customers, especially during these most difficult days."

On Sept. 20, Bombay filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code for itself and its U.S. subsidiaries in U.S. Bankruptcy Court for the Northern District of Texas, Fort Worth Division. On the same day, The Bombay Furniture Company of Canada announced that it had obtained an Order from the Ontario Superior Court of Justice providing it with protection from its creditors under the Companies' Creditors Arrangement Act.