A joint venture of Gordon Brothers Retail Partners and Hilco Merchant Resources has submitted the winning bid in the auction to acquire the operations of Bombay Co. Inc., the direct marketer and retailer and that filed Chapter 11 bankruptcy late last month.
The group plans to liquidate the Fort Worth, TX-based, firm’s U.S. stores.
This agreement is subject to the approval of U.S. Bankruptcy Court for the Northern District of Texas, which is expected to hold a hearing later this week.
In addition, Hilco Consumer Capital, the joint venture partners, and Bowring and Benix and Co. plan to continue Bombay’s Canadian operations after inventory disposition sales.
The Canadian transaction is subject to completion of the auction and court approvals in the U.S. and Canada.
On Sept. 20, Bombay and five affiliated companies filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code (Direct Newsline, Sept. 21).
Bombay owes more than $8.3 million in unsecured debt. According to court documents, those creditors include AT&T ($75,000), Advertising.com Inc. ($100,621), Federal Express ($189,336), DHL ($141,991) and several real estate-related companies.
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