NEW YORK Oct 15 Home furnishing and accessories store Bombay Co Inc BBAOE.OB is closing its United States stores, but keeping its Canadian operations open.
Bombay, which filed for bankruptcy on Sept 20, announced on Friday that a joint venture of Gordon Brothers Retail Partners and Hilco Merchant Resources submitted the winning bid for its U.S. inventory.
Gordon and Hilco agreed to partner with two Canadian home- furnishing retailers, Bowring and Benix & Co to keep the chain's Canadian stores open, Bombay said.
The amount of the bid was not disclosed.
The agreement between Bombay and Gordon/Hilco still needs approval from the U.S. Bankruptcy Court and an Ontario court. A hearing is scheduled for Monday in Fort Worth, Texas.
If the plan is approved, store closing sales at its U.S. stores could begin this week, Bombay said. Stores are expected to remain open through the holiday season.
Fort-Worth based Bombay operates 384 retail outlets in the United States and 57 in Canada with about 4,500 employees, according to a filing with the U.S. Securities and Exchange Commission.
In September, Bombay secured a $115 million debtor-in- possession financing facility from General Electric Capital Corp and GE Canada Finance Holding Co.
Bombay shares were down more than 36 percent at 7 cents on the over-the-counter bulletin board. The shares are down about 95 percent for the year.