The Bombay Company sold a substantial portion of the assets of wholesale business Bailey Street Trading Company to a newly formed corporation that consists mainly of management, the Fort Worth, TX, multichannel merchant said yesterday.
Bombay received $4.7 million in cash in return for $1.1 million in accounts receivable and $2.3 million worth of inventory as well as intellectual property, equipment and facilities associated with the Bailey Street Trading business.
Bailey Street Trading offers a proprietary line of accent furniture. The name of its new parent is Bailey Street Holding Company.
The transaction will result in a one-time, non-cash charge of about $1.2 million to $1.4 million related to the costs of exiting the distribution center used by Bailey Street.
“Exiting the business will allow Bombay to focus on its retail operations and will help provide the liquidity needed to continue the company's strategy to migrate from mall to off-mall locations and improve the overall strength of the balance sheet,” Bombay chairman/CEO James D. Carreker said in a statement.
Chantal Todé covers catalog and retail news and BTB marketing for DM News and DM News.com. To keep up with the latest developments in these areas, subscribe to our daily and weekly e-mail newsletters by visiting www.dmnews.com/newsletters