Bombay to conduct store-closing sales with Hilco joint venture as agent

By Caroline Salls

Pittsburgh, Oct. 17 - The Bombay Co. Inc. obtained court approval to hold store-closing sales, with a joint venture between Hilco Merchant Resources, LLC and Gordon Brothers Retail Partners, LLC to serve as agents for the store-closing sales, according to a Tuesday filing with the U.S. Bankruptcy Court for the Northern District of Texas.

The Hilco joint venture will be paid 109.5% of the total value of the merchandise included in the store-closing sales. Bombay said the total value of the merchandise will be at least $95.5 million.

If proceeds exceed the $95.5 million merchandise value, plus sale expenses and 5% of the total merchandise value, half of the excessive proceeds will go to the company and half to the agent.

The store-closing sales must be completed by Jan. 31, according to the order.

Because the original stalking horse bidder, which was a joint venture made up of Tiger Capital Group, LLC, Crystal Capital, LP and SB Capital, LLC, was not the high bidder at the store-closing agent auction, Bombay will pay the Tiger joint venture a $1.08 million break-up fee.

Bombay, a Fort Worth, Texas-based designer, importer and marketer of proprietary home furnishings, filed for bankruptcy on Sept. 20. Its Chapter 11 case number is 07-44084.

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