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Report: Bombay to pay as much as 31.5% of claims

Hearing on plan set for next month

By Furniture Today Staff -- Furniture Today, June 2, 2008

FORT WORTH, Texas — The Bombay Company plans to pay its suppliers and other unsecured creditors 18.5 cents to 31.5 cents on the dollar of their estimated $68 million to $76 million in claims, according to a newspaper report.

The plan is the subject of a hearing next month and leaves open the possibility of legal action against the retailer’s former executives and lenders, according to the reports.

The Top 100 company filed for Chapter 11 bankruptcy protection in September and later sold its Canadian business as a going concern and liquidated its U.S. operations. Earlier this year, Hilco Consumer Capital and Gordon Bros. acquired Bombay’s intellectual property rights in the United States.

For a story from the Fort Worth Star-Telegram, click here

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