Fort Worth, Texas, Bombay Co. said Thursday it has filed for bankruptcy protection but will keep stores open as it continues to look for a buyer, according to the Associated Press.
The company said it had secured a commitment for $115 million in debtor-in-possession financing from General Electric Capital Corp. and GE Canada Finance Holding Co.
Bombay said it would continue to pay employees and suppliers and preserve workers' benefits. It also said it would honor customers' returns and exchanges, the report said.
In a filing in U.S. District Court in Fort Worth, Bombay said that it had $239.4 million in assets and $173.4 million in debts as of May 5. Bombay said its Canadian operations would also seek protection from creditors.
The company has lost money for the last three years. In its latest quarterly report, covering March through May, the company said it lost $15.4 million, only slightly better than the $15.6 million loss of a year earlier.
About that time, independent auditors said they were concerned about Bombay's ability to stay in business. The company said it had received buyout offers, but that they were nonbinding.