Bombay signs deal to keep brand alive
By Furniture Today Staff -- Furniture Today, January 6, 2008
Fort Worth, Texas — The Bombay Company said it has struck a deal with Hilco Consumer Capital and Gordon Bros. that's aimed at keeping the Bombay name alive.
Bombay Brands will be a new venture that will introduce consumer products through wholesalers and sell them through retail and brand franchisee partners, the companies said.
Fort Worth-based specialty retailer Bombay, which filed for Chapter 11 bankruptcy protection last year and is liquidating U.S. stores and selling Canadian units, said the deal must still be approved by the bankruptcy court. The Bombay bankruptcy estate would retain a 25% interest in Bombay Brands.
Hilco and Gordon Bros. will lead a joint venture that owns 75%, and investment firm Hilco Consumer Capital will assume day-to-day management. It will be assisted by the Bombay estate, and brand strategy and marketing firm Graf + Gustavsen, which also is a partner in the joint venture.
Under proposed terms of the deal described in bankruptcy court documents, the joint venture would pay the Bombay estate $1.25 million. In addition, the joint venture would commit $1.5 million and the estate would commit $500,000 in capital to Bombay Brands.
Hilco executive John Collins was named president and chief marketing officer of Bombay Brands. He also is president of Hilco TAG, owner of Tommy Armour Golf and RAM Golf. He has worked for more than 25 years in managing and marketing brands, including Nike, Eddie Bauer, Volant Ski, Canon and Kubik.
"The Bombay brand differentiates itself through a lifestyle approach in the home furnishings category," said Collins. "It offers terrific opportunities for expansion and development into a whole new range of highly desirable and affordable consumer lifestyle products."
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Bombay strikes deal with Hilco and Gordon
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