Bombay Company files for bankruptcy
Fort Worth, Texas-based specialty home decor retailer Bombay Company said today it has filed for Chapter 11 bankruptcy protection.
Bombay said it has a commitment for debtor-in-possession financing from General Electric Capital and GE Canada Finance Holding, though the financing is contingent on the approval of the company’s bankruptcy filing. The company also is seeking bankruptcy protection from creditors for its operations in Canada.
In its most recent quarterly report, Bombay lost $15.4 million, slightly narrower than $15.6 million in losses in the same period last year.
In its filing with the U.S. District Court in Fort Worth, Texas, Bombay said it has $239.4 million in assets and $173.4 million in debts as of May 5. The company plans to continue to pay employees and suppliers and would honor returns and exchanges from customers.
"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 CEO David Stewart in a statement.
He added that the company expects to emerge from bankruptcy and operate as usual following the filing.
Bombay designs, sources and markets home decor products through 384 retail outlets and an e-commerce site.