The Bombay Company, Inc. announced that it has received approval from the Ontario (Canada) Superior Court of Justice to sell its wholly-owned, 50-store subsidiary, Bombay Furniture Company of Canada, Inc., to a newly-formed subsidiary of Canadian retailer, Benix, Inc. Stores will continue to be operated in-place and under the Bombay brand. The transaction, which was arranged by Toronto-based Hilco Consumer Capital, is expected to close on or about February 5, 2008.
Beginning immediately and until the date of closing, a joint venture of Gordon Brothers Retail Partners, LLC and Hilco Merchant Resources, LLC (“the Joint Venture”) will manage all 50 Canadian stores, and will conduct inventory promotions and clearance sales. Current Bombay employees will be retained by the Joint Venture. Upon closing, all stores will be transitioned from the Joint Venture to the newly-formed subsidiary of Benix, which is expected to keep all stores in-place and hire the vast majority of the then-existing employees.
Fred Benitah, Chief Executive Officer of The B&C Group, which owns and operates Benix as well as the Bowring retail chain with a total of 150 stores across Canada, said, “We are excited about this acquisition. Bombay represents one of the most respected retail brands in Canada. Bombay Canada both complements our existing retail brands and strengthens our position as Canada's leading homeware retailer."
Margaret Morrison, President of Benix, added, “This acquisition of Bombay Canada is very exciting and creates great synergies among these three leading brands. I look forward to working with the Bombay management team”
Nigel Travis, Lead Director of the Bombay Board of Directors, stated, “The Canadian market has always been very important to Bombay. We are happy that the Bombay brand will continue into the future as part of the Benix group and that our valued employees will play an important role in ensuring the transaction’s long-term success. We will all work together for a smooth and seamless transition, with the goal of minimizing disruption to customers.”
James “Jamie” Salter, CEO of Hilco Consumer Capital, said, “It is very satisfying to have structured and successfully completed this remarkably complex transaction. Not only were we able to create more value for Bombay’s creditors in the company’s bankruptcy, we were also able to protect hundreds of jobs and ensure the future integrity of a very respected brand name.”
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.
About Benix & Co.
Benix & Co. is Canada’s pre-eminent housewares retailer specializing in cooking, home entertaining and gift-giving for all occasions.
About Hilco Consumer Capital
Hilco Consumer Capital was formed in 2006 to make private equity investments in prominent consumer brands and build significant, additional value in them through innovative product development, creative marketing and licensing strategies. Among HCC’s most recent acquisitions are the Tommy Armour® Group of golf brands, the Halston® fashion brand and the Caribbean Joe® line of island apparel.
About Gordon Brothers
Founded in 1903, Gordon Brothers (www.gordonbrothers.com) is an advisory, restructuring and investment firm specializing in the retail, consumer products, real estate and industrial sectors. In addition to undertaking private equity investments, Gordon Brothers provides asset valuations and appraisals, dispositions, real estate consulting, lending and advisory services.
About Hilco Merchant Resources
Hilco Merchant Resources provides a wide variety of services including merger and acquisition facilitation, strategic store closings including inventory disposition, business strategies, outsourced services including Interim management, loss prevention, asset protection and store openings. For more information visit www.hilcomerchantresources.com
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