Bombay to shut down all of its U.S. operations

All of Bombay Co.'s home-furnishings stores across the country will be closed and the merchandise sold as a result of a bankruptcy auction, the Fort Worth-based company said Friday night.

A joint venture of Gordon Bros. Retail Partners and Hilco Merchant Resources submitted the winning bid for Bombay's U.S. inventory, which "contemplates a liquidation of Bombay's U.S. stores," the company said in a statement.

Bombay said the bidders plan to start going-out-of-business sales at its U.S. stores as early as next week, if the plan wins court approval. The stores will remain open through the holiday season, Bombay CEO David Stewart said.

The two companies, in conjunction with Hilco Consumer Capital and two Canadian retailers -- Bowring and Benix & Co. -- plan to continue to operate Bombay's Canadian stores.

The amount of the bid was not disclosed.

"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," Stewart said in a statement.

Company officials were not available Friday night to answer questions or provide further details.

Bombay operates about 390 stores in the U.S. and about 50 in Canada. It employs about 3,600 people, including more than 200 at its Fort Worth headquarters. The fate of the headquarters building was not disclosed.

The U.S. Bankruptcy Court for the Northern District of Texas and the Ontario Superior Court of Justice must approve Bombay's plan. A court hearing is scheduled for 11 a.m. Monday in Fort Worth.

Bombay filed for Chapter 11 bankruptcy Sept. 20 after failing to find a buyer and failing to reverse three years of losses.

Star-Telegram.com | 10/13/2007 | Bombay to shut down all of its U.S. operations