The Bombay Company, Inc. announced that it has filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code for itself and its U.S. subsidiaries. The filing, which was made in U.S. Bankruptcy Court for the Northern District of Texas, Fort Worth Division, is 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 ("CCAA").
In addition, the Company filed a variety of "first day motions" to support its employees, vendors, customers and other stakeholders; to obtain interim financing authority and maintain existing cash management programs; to retain legal, financial and other professionals; to support the Company's reorganization case; and for other relief.
Bombay has taken this action after determining that reorganizing under Chapter 11 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:
- Conduct business as usual through its retail stores and Internet
- Honor its customer service policies such as returns, exchanges,
credits, and its gift card program
- Pay "post-petition" vendors, suppliers and other business partners for goods and services provided
- Continue to pay employees' wages and salaries, offering the same medical, dental, life insurance, disability and other benefits, and to accrue vacation time without interruption
"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 success."
To help fund its business during the Chapter 11 proceedings, Bombay has secured a commitment for a $115 million debtor-in-possession (DIP) financing facility from General Electric Capital Corporation and GE Canada Finance Holding Company.
Additional information on today's announcement is available on the Company's website at http://www.bombaycompany.com/. Details regarding the Chapter 11 filing can be found at http://www.txnb.uscourts.gov/.
About Bombay: 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.
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