FORT WORTH, Texas, Oct. 12 /PRNewswire-FirstCall/ -- The Bombay Company, Inc. ("Bombay") (BULLETIN BOARD: BBAOE) today announced that a joint venture of Gordon Brothers Retail Partners, LLC and Hilco Merchant Resources, LLC ("the Joint Venture") has submitted the winning bid at the auction for Bombay's business operations, which contemplates a liquidation of Bombay's U.S. stores. In addition, in a transaction arranged by Hilco Consumer Capital, the Joint Venture, in partnership with Bowring and Benix & Co., provides for the continuation of Bombay's Canadian operations after inventory disposition sales. The Canadian transaction is an agreement in principle subject to completion and the results of the auction are subject to certain conditions including court approvals in the United States and Canada.
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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 Inc., a wholly-owned subsidiary of Bombay, will seek acceptance of this successful bid from the Ontario Superior Court of Justice early next week.
The Joint Venture intends to begin the store closing sales at Bombay's U.S. stores next week following court approval. Other Bombay assets, including its U.S. intellectual property rights and its real estate assets, are not part of the proposed transaction.
"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 B. Stewart, Chief Executive Officer 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."
Fred Benitah, Chief Executive Officer of Bowring and Benix, said, "Bowring and Benix are excited about this acquisition. 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."
Margaret Morrison, President of Benix, added, "I am pleased and look forward to working with Bombay's exceptional group of management and employees."
On September 20, 2007, 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 Inc. 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.
Safe Harbor Statement
Certain statements made in this news release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are made based upon management's current expectations and beliefs concerning future developments and their potential effects upon the Company. These forward-looking statements include statements regarding the Company's expectations concerning the bankruptcy process and other risk factors identified in the Company's Annual Report on Form 10-K for the fiscal year ended February 3, 2007, the Company's Quarterly Report on Form 10-Q for the quarter ended May 5, 2007 and other filings with the Securities and Exchange Commission. There can be no assurance that future developments affecting the Company will be those anticipated by management. The Company disclaims any obligation to update or revise any of the forward-looking statements that are in this news release.
About Bombay
The Bombay Company, Inc. designs, sources and markets a unique line of home accessories, wall decor and furniture through 384 retail outlets and the Internet in the U.S. and internationally. Further information on The Bombay Company, Inc. can be found on the Company's website at http://www.bombaycompany.com/.
About Gordon Brothers
Founded in 1903, Gordon Brothers (http://www.gordonbrothers.com/) is an advisory, restructuring and investment firm specializing in the retail, consumer products, real estate and industrial sectors. In addition to undertaking private equity investments, Gordon Brothers provides asset valuations and appraisals, dispositions, real estate consulting, lending and advisory services.
About Hilco Merchant Resources
Hilco Merchant Resources provides a wide variety of services including merger and acquisition facilitation, strategic store closings including inventory disposition, business strategies, outsourced services including Interim management, loss prevention, asset protection and store openings. For more information visit http://www.hilcotrading.com/
About Bowring
Founded in 1811, Bowring is one of the oldest and most respected names in Canadian retailing. Bowring currently has 56 locations across Canada selling an array of furniture, gifts, fashion tableware and decorative home accessories
About Benix & Co.
Benix & Co. is Canada's pre-eminent housewares retailer specializing in cooking, home entertaining and gift-giving for all occasions.
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