- Stores will remain open for business as usual
- Will fund operations, including employee salaries and benefits, and
post-petition vendor payments during reorganization process
TORONTO, Sept. 20 /CNW/ -- The Bombay Furniture Company of Canada Inc.
("Bombay-Canada"), a wholly-owned subsidiary of The Bombay Company, Inc.
("Company"), today announced that it has obtained an Order from the Ontario
Superior Court of Justice providing it with protection from its creditors
under the Companies' Creditors Arrangement Act.
As previously announced, the U.S.-based parent company also 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. The Company has taken these
actions after determining that this restructuring is in the best long-term
interests of the Company, its employees, customers, creditors, business
partners and other stakeholders. During this process, the Company intends to
continue normal business operations.
"After considering a wide range of alternatives, this course of action
was seen as the best route to help preserve our internationally respected
brand while working to secure our future," said David B. Stewart, Chief
Executive Officer of the Company. "With a tremendous talent pool and an
excellent selection of high quality home accessories and furnishings, we are
confident that our business will emerge from this process stronger and more
competitive. We are very grateful for the dedication and hard work of all our
employees and look forward to providing them with a clear road map for
To help fund the Company's business during the restructuring, GE
Corporate Lending and GE Canada Finance Holding Company have expressed a
willingness to provide a $115 million debtor-in-possession ("DIP") financing
facility, of which up to $15 million would be for the benefit of the Canadian
operations. The Company will be seeking Bankruptcy Court approval of the DIP
facility on Tuesday, September 25, 2007, and Bombay-Canada will be seeking
Ontario Superior Court of Justice approval on September 26, 2007.
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 and forward-looking information within the meaning of applicable
securities laws in Canada (collectively, "forward looking statements").
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 the
continuation of its day to day operations and payments to vendors and
employees in the ordinary course. Actual results may differ materially from
those included in the forward-looking statements due to a number of factors,
including, but not limited to, the following: the ability of the Company to
continue as a going concern; the ability of the Company to obtain approval of
the DIP facility; court approval of the Company's first day papers and other
motions prosecuted by it from time to time; the ability of the Company to
develop, prosecute, confirm and consummate one or more plans of reorganization
with respect to the Chapter 11 cases; risks associated with third parties
seeking and obtaining court approval to terminate or shorten the exclusivity
period for the Company to propose and confirm one or more plans of
reorganization, for the appointment of a Chapter 11 trustee or to convert the
cases to Chapter 7 cases; the ability of the Company to obtain trade credit,
and shipments and terms with vendors and service providers for current orders;
the Company's ability to maintain contracts that are critical to its
operations; potential adverse developments with respect to the Company's
liquidity or results of operations; the ability to fund and execute its
business plan; the ability to attract, retain and compensate key executives
and associates; the ability of the Company to attract and retain customers;
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.
Bombay-Canada sources and markets a unique line of home accessories, wall
decor and furniture through 50 retail outlets throughout Canada.
Further information on The Bombay Company, Inc. can be found on the
Company's website at http://www.bombaycompany.com.
For further information:
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