--50 Canadian Stores Will Continue to Operate Under Bombay Brand.
--Transaction Arranged by Hilco Consumer Capital, LLC.
TORONTO, October 23 /CNW/ - The Bombay Company, Inc. ("Bombay")
(OTCBB:BBAO) today announced that it has received approval from the Ontario
(Canada) Superior Court of Justice to sell its wholly-owned, 50-store
subsidiary, Bombay Furniture Company of Canada, Inc., to a newly-formed
subsidiary of Canadian retailer, Benix, Inc. Stores will continue to be
operated in-place and under the Bombay brand. The transaction, which was
arranged by Toronto-based Hilco Consumer Capital, is expected to close on or
about February 5, 2008.
Beginning immediately and until the date of closing, a joint venture of
Gordon Brothers Retail Partners, LLC and Hilco Merchant Resources, LLC ("the
Joint Venture") will manage all 50 Canadian stores, and will conduct inventory
promotions and clearance sales. Current Bombay employees will be retained by
the Joint Venture. Upon closing, all stores will be transitioned from the
Joint Venture to the newly-formed subsidiary of Benix, which is expected to
keep all stores in-place and hire the vast majority of the then-existing
Fred Benitah, Chief Executive Officer of The B&C Group, which owns and
operates Benix as well as the Bowring retail chain with a total of 150 stores
across Canada, said, "We are excited about this acquisition. Bombay represents
one of the most respected retail brands in Canada. Bombay Canada both
complements our existing retail brands and strengthens our position as
Canada's leading homeware retailer."
Margaret Morrison, President of Benix, added, "This acquisition of Bombay
Canada is very exciting and creates great synergies among these three leading
brands. I look forward to working with the Bombay management team"
Nigel Travis, Lead Director of the Bombay Board of Directors, stated,
"The Canadian market has always been very important to Bombay. We are happy
that the Bombay brand will continue into the future as part of the Benix group
and that our valued employees will play an important role in ensuring the
transaction's long-term success. We will all work together for a smooth and
seamless transition, with the goal of minimizing disruption to customers."
James "Jamie" Salter, CEO of Hilco Consumer Capital, said, "It is very
satisfying to have structured and successfully completed this remarkably
complex transaction. 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."
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.
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.
About Benix & Co.
Benix & Co. is Canada's pre-eminent housewares retailer specializing in
cooking, home entertaining and gift-giving for all occasions.
About Hilco Consumer Capital
Hilco Consumer Capital was formed in 2006 to make private equity
investments in prominent consumer brands and build significant, additional
value in them through innovative product development, creative marketing and
licensing strategies. Among HCC's most recent acquisitions are the Tommy
Armour(R) Group of golf brands, the Halston(R) fashion brand and the Caribbean
Joe(R) line of island apparel.
About Gordon Brothers
Founded in 1903, Gordon Brothers (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
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 www.hilcomerchantresources.com
For further information:
For further information: Hilco Consumer Capital, LLC Richard L. Kaye,
Chief Marketing Officer (847) 418-2711 firstname.lastname@example.org