Home furnishing retailers have been hammered for the past year--ever since the housing bubble started to deflate. Now Bombay Co. has filed for bankruptcy.
The Bombay Co., Inc. has filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code for itself and its U.S. subsidiaries. The company said it has secured a commitment for a $115 million debtor-in-possession financing facility from General Electric Capital Corp. and GE Canada Finance Holding Company. The filing, which was made in U.S. Bankruptcy Court for the Northern District of Texas, Fort Worth Division, is said by Bombay to be part of the company's efforts to address financial challenges and identify a strategic or financial investor. Bombay's Canadian operations also will be seeking protection under the Companies' Creditors Arrangement Act in Canada.
Bombay said it intends to conduct business as usual through its retail stores and websites and honor its customer service policies, pay "post-petition" vendors, suppliers and other business partners and continue to pay employees' wages and salaries.