Home decor retailer Bombay Company has been sold at auction in a deal that would see all the company’s U.S. assets liquidated, with operations continuing only in Canada. Financial terms of the deal were not disclosed.
Retail investment companies Gordon Brothers Retail Partners and Hilco Merchant Resources won an auction for the home decor company, which filed for Chapter 11 bankruptcy protection in September.
Bombay said the two investment groups have proposed that Canadian retailers Bowring and Benix have agreed to help keep the Canadian Bombay stores open.
If the U.S. Bankruptcy Court in Ft. Worth, Texas, approves the deal, Bombay could start store closing sales as early as this week. Other Bombay assets, including its U.S. intellectual property rights and its real estate assets, are not part of the proposed transaction.
"This is a difficult day for Bombay in the United States," said Bombay CEO David Stewart in a statement. "Over the coming weeks and months, our U.S.-based employees will work closely with [the investment groups] to prepare, stock and operate the stores during the holiday season.”
The company operates a total of 384 retail outlets in the United States and Canada.