Bombay granted court OK to sell Bombay Furniture of Canada subsidiary

By Caroline Salls

Pittsburgh, Oct. 23 - The Bombay Co., Inc. has received approval from the Ontario Superior Court of Justice to sell its wholly owned, 50-store subsidiary Bombay Furniture Co. of Canada, Inc. to a newly formed subsidiary of Canadian retailer Benix, Inc., according to a Bombay news release.

The sale is expected to close on Feb. 5.

Until the sale closes, Bombay said a joint venture of Gordon Brothers Retail Partners, LLC and Hilco Merchant Resources, LLC will manage all 50 Canadian stores and will conduct inventory promotions and clearance sales.

Upon closing, all stores will be transitioned from the joint venture to the Benix subsidiary, which is expected to keep all stores in place and hire the vast majority of the stores' employees.

"It is very satisfying to have structured and successfully completed this remarkably complex transaction," Hilco Consumer Capital chief executive officer James "Jamie" Salter said in the release.

"Not only were we able to create more value for Bombay's creditors in the company's bankruptcy, we were also able to protect hundreds of jobs and ensure the future integrity of a very respected brand name."

Bombay, a Fort Worth, Texas-based designer, importer and marketer of proprietary home furnishings, filed for bankruptcy on Sept. 20 in the U.S. Bankruptcy Court for the Northern District of Texas. Its Chapter 11 case number is 07-44084.

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