Bombay Co. Sold
By Staff -- Gifts & Decorative Accessories, 10/14/2007 10:03:00 AM
Fort Worth, TX — Two investment firms teamed up to win the auction for the long-troubled Bombay Co., which filed for Chapter 11 bankruptcy in September, and in early October declared it was looking for a quick sale. Gordon Brothers Retail Partners LLC, Boston, and Hilco Merchant Resources, Northbrook, IL, both specialize in asset dispositions and appraisals and other transactions.
The two investment firms plan to close those of Bombay’s 384 stores in the U.S., but agreed to partner with two Canadian home furnishings retailers, Bowring and Benix, to keep the Canadian stores open.
Bombay will submit the agreement to U.S. Bankruptcy Court in Fort Worth, and expects a hearing in the next few days. In addition, the plan is subject to clearance by the Ontario Superior Court of Justice. If the court approves, closeout sales would begin this week. The deal does not include Bombay's U.S. intellectual property and real estate.
Bombay has an ongoing relationship with Gordon Brothers: the company loaned Bombay $10 million in May. Nor is this Gordon Brothers' first venture into gift retail; the company is also an owner of Things Remembered and retains a minority interest in Spenser Gift as well as helping to liquidate the Discovery Stores.
