Hermes-Otto International USA acquires The Bombay Company from Hilco Consumer Capital and Gordon Brothers Group
NEW YORK, NY – Hermes-Otto International USA LLC [H-OI], the U.S. division of global fashion and lifestyle company Otto Group, announced the acquisition of Bombay Brands LLC and its marquis furniture and home décor brand The Bombay Company.
H-OI purchased the Bombay Company trademarks and intellectual property from Hilco Consumer Capital and Gordon Brothers Group, which relaunched the iconic brand through a joint partnership in 2008. The joint-venture partners were responsible for the rejuvenation of the full Bombay collection in the United States last fall and repositioned the brand for the wholesale market with programs suited for specialty and department store distribution. Under the previous ownership, H-OI served as the exclusive North American licensee of Bombay products. The purchase gives the company direct, global control of the brand, which is best known for its globally-inspired home décor and furniture.
“With its potent blend of classic styling and unexpected detail, The Bombay Company continues to be a vital, highly-recognized brand in the U.S.,” said William Hollands, president of H-OI, who will now serve as head of The Bombay Company. “Through Hermes-Otto International’s extensive sourcing and sales networks and my own long-term experience with Bombay, we plan to grow the brand by creating new and classic Bombay products and developing long-term partnerships with key retailers.”
Hollands, a top home furnishings industry veteran with extensive retail and wholesale management experience, has an illustrious history with The Bombay Company. He served as its vice president of merchandising from 2004 to 2007 and was instrumental in the development and sourcing of multiple product categories for the brand.
Since Bombay’s relaunch in 2008, Hollands has spearheaded its reintroduction to the United States as the brand’s chief merchant. Now he will continue to build the brand’s wholesale business and leverage its heritage of quality and unique design to develop both new and classic Bombay products.
“Gordon Brothers Group is pleased with the transition of the Bombay brand to Hermes-Otto International,” said Stephen Miller, Chief Executive Officer of Gordon Brothers Group’s Brand Division. “After working with the firm as the exclusive licensee, we feel confident that the brand’s integrity and enterprise value will be protected. We look forward to following the growth of The Bombay Company as it continues to expand into additional distribution channels.”
"Bombay has fulfilled our expectations," said Mitch Berk, CEO of Hilco Consumer Capital. “We are pleased with the value we were able to add to this iconic brand since we made this investment. We are confident that it is well positioned for future growth under the capable direction of Hermes-Otto.”
Bombay is best known as the pioneer of the worldgoods concept, which has become one of the most important home industry trends. Founded in 1978 as a niche specialty home goods retail concept, the Bombay Company grew to approximately 350 retail stores and nearly $600 million in annual retail sales volume. The brand continues to score at the top of national consumer surveys as one of the most recognized home brand names in the U.S.
On the brand’s future in the U.S., Hollands said, “Bombay is one of the most highly-recognized home décor brands in the U.S., and we will continue to deliver value, convenience and globally-inspired design to new and long-term Bombay customers,” Hollands added.
The purchase price was not disclosed. The deal does not include Bombay and Co. Inc., a company that has exclusive right to sell Bombay products in Canada.
About Hermes-OTTO International
Hermes-OTTO International (H-OI) (www.hermes-ottoint.com) is the U.S. division of the Otto Group, a global trading company with extensive holdings in the home furnishings industry. With more than 40 years of sourcing experience, H-OI offers a wide range of products including apparel, sports, lingerie, footwear, furniture, home textiles and electrical/electronic products. The company’s worldwide, quality certified supplier network allows access to all major sourcing markets and is characterized by longstanding relationships. In addition to sourcing, H-OI offers a broad spectrum of other services, from assortment creation to financial services, to brick-and-mortar retail, internet and catalog brands. Partners can choose either to commission H-OI with implementing individual modules or handling the whole process chain.
About Gordon Brothers Group
Founded in 1903, Gordon Brothers Group (www.gordonbrothers.com) is a global advisory, restructuring and investment firm specializing in the retail, consumer products, industrial and real estate sectors. Gordon Brothers Group maximizes value for both healthy and distressed companies by purchasing or selling all categories of assets, appraising assets, providing debt financing, making private equity investments and operating businesses for extended periods. Gordon Brothers Group conducts over $50 billion worth of transactions and appraisals annually.
About Hilco Consumer Capital
Formed in 2006, Hilco Consumer Capital (“HCC”) (www.hilcocc.com) is a specialized private equity firm with an exclusive focus on investing in branded consumer companies. HCC looks to make equity or debt investments in retailers, wholesalers, manufacturers and intellectual property in this space and seeks to build significant, additional value through innovative product development, marketing, merchandising and licensing strategies. HCC has become a recognized leader in the investing in and growing of iconic consumer brands. HCC’s current investments include Polaroid, The Sharper Image, Halston, Linens ‘N Things, Ellen Tracy,, Caribbean Joe, House of Marley and Fredericks of Hollywood. HCC is a unit of The Hilco Organization (www.hilcotrading.com), an international asset valuation, disposition, acquisition and advisory firm founded in 1987.
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