8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported) Sept 2, 2008

THE BOMBAY COMPANY, INC.

(Exact Name of Registrant as Specified in Its Charter)

Delaware

(State or Other Jurisdiction of Incorporation)

1-7832	75-1475223
(Commission File Number)	(I.R.S. Employer Identification No.)
550 Bailey Avenue, Fort Worth, Texas	76107
(Address of Principal Executive Officers)	(Zip Code)

(817) 347-8200

(Registrant’s Telephone Number, Including Area Code)

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4 (c))

Item 8.01  Other Events.

The Monthly Operating Report for The Bombay Company, Inc. for the period July 6, 2008 through August 2, 2008, which was filed with the Bankruptcy Court on September 2, 2008, is attached hereto as Exhibit 99.1.

Cautionary Statement Regarding the Monthly Operating Report

The Monthly Operating Report contains financial statements and other financial information that have not been audited or reviewed by The Bombay Company, Inc.’s independent auditors and may be subject to future reconciliation or adjustments.  The Monthly Operating Report is in a format prescribed by applicable bankruptcy laws and should not be used for investment purposes.  The Monthly Operating Report contains information for periods different from those required in The Bombay Company, Inc.’s reports pursuant to the Securities Exchange Act of 1934 (the ‘Exchange Act”) and may not be indicative of The Bombay Company, Inc.’s financial condition or operating results for the period that would be reflected in The Bombay Company, Inc.’s financial statements or its reports pursuant to the Exchange Act.  Results set forth in the Monthly Operating Report should not be viewed as indicative of future results.

Item 9.01  Financial Statements and Exhibits.

(d) Exhibits

Exhibit No.	Exhibit Name
99.1	Monthly Operating Report for The Bombay Company, Inc. for July 6, 2008 through August 2, 2008

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	THE BOMBAY COMPANY, INC.
	(Registrant)
Date:  September 2, 2008	/S/ ELAINE D. CROWLEY
	Elaine D. Crowley,
	Senior Vice President, CFO
	and Treasurer

EX-99.1

Exhibit 99.1

	Monthly Operating Report
CASE  NAME: The Bombay Company, Inc. (1)	ACCRUAL BASIS
CASE  NUMBER: 07-44084-dml-11
JUDGE: D. Michael Lynn

UNITED  STATES  BANKRUPTCY  COURT

NORTHERN  DISTRICT OF TEXAS

DIVISION  6

MONTHLY  OPERATING  REPORT

MONTH  ENDING: JULY 2008

IN ACCORDANCE WITH TITLE 28, SECTION 1746, OF THE UNITED STATES CODE, I DECLARE UNDER PENALTY OF PERJURY THAT I HAVE EXAMINED THE FOLLOWING MONTHLY OPERATING REPORT (ACCRUAL BASIS-1 THROUGH ACCRUAL BASIS-7) AND THE ACCOMPANYING ATTACHMENTS AND, TO THE BEST OF MY KNOWLEDGE, THESE DOCUMENTS ARE TRUE, CORRECT AND COMPLETE. DECLARATION OF THE PREPARER (OTHER THAN RESPONSIBLE PARTY): IS BASED ON ALL INFORMATION OF WHICH PREPARER HAS ANY KNOWLEDGE.

RESPONSIBLE  PARTY:
/s/ Elaine D. Crowley	Senior Vice President, Chief Financial Officer and Treasurer
ORIGINAL  SIGNATURE  OF  RESPONSIBLE  PARTY	TITLE
Elaine D. Crowley	September 2, 2008
PRINTED NAME OF RESPONSIBLE PARTY	DATE
PREPARER:
/s/ Charlotte B. Stadler	Assistant Controller
ORIGINAL  SIGNATURE  OF  PREPARER	TITLE
Charlotte B. Stadler	September 2, 2008
PRINTED NAME OF PREPARER	DATE

Notes:

[1] A consolidated monthly operating report has been submitted for the following debtor entities: The Bombay Company, Inc. (Case No. 07-44084-dml-11), The Bombay Furniture Company, Inc. (Case No. 07-44085-dml-11), BBA Holdings, LLC (Case No.07-44086-dml-11), Bombay International, Inc. Case No. (07-44087-dml-11), Bailey Street Trading Company (Case No. 07-44088-dml-11), and  BMAJ, Inc. (Case No. 07-44061-dml-11). Jointly Administered Under The Bombay Company, Inc. (Case No. 07-44084-dml-11), (collectively, the "Debtors").

[2] The Debtors operate under a retail (52-53 week) fiscal year, which ends on the Saturday nearest January 31.  For the purposes of the monthly operating reports, the following month-end dates have been reported: (1) September 2007 ended on October 6, 2007; (2) October 2007 ended on November 3, 2007; (3) November 2007 ended on December 1, 2007; (4) December 2007 ended on January 5, 2008; (5) January 2008 ended on February 2, 2008; (6) February 2008 ended on March 1, 2008; (7) March 2008 ended on April 5, 2008; (8) April 2008 ended on May 3, 2008; (9) May 2008 ended on May 31, 2008; (10) June 2008 ended on July 5, 2008; amd (11) July 2008 ended on August 2, 2008.

CASE  NAME: The Bombay Company, Inc.

CASE  NUMBER: 07-44084-dml-11

COMPARATIVE BALANCE SHEET
		Petition Date			December 2007			April 2008			May 2008			June 2008			July 2008
ASSETS		9/20/07
1.	CASH & CASH EQUIVALENTS (1)	$	3,145,672		$	29,646,525		$	25,918,924		$	25,268,932		$	23,922,132		$	25,834,020
2.	ACCOUNTS  RECEIVABLE  (NET)	$	220,767		$	270,903		$	0		$	0		$	0		$	0
3.	INVENTORY	$	104,233,126		$	15,142,324		$	0		$	0		$	0		$	0
4.	NOTES  RECEIVABLE	$	573,167		$	586,953		$	0		$	0		$	0		$	0
5.	PREPAID  EXPENSES	$	8,411,346		$	9,769,006		$	1,433,232		$	1,388,178		$	1,348,481		$	1,343,124
6.	OTHER CURRENT ASSETS	$	1,514,755		$	4,058,941		$	4,839,753		$	4,499,927		$	4,377,822		$	2,009,489
7.	TOTAL  CURRENT  ASSETS	$	114,953,161		$	29,828,127		$	6,272,985		$	5,888,105		$	5,726,303		$	3,352,613
8.	PROPERTY,  PLANT  &  EQUIPMENT	$	157,137,582		$	145,303,849		$	2,330,915		$	2,330,915		$	0		$	0
9.	LESS:  ACCUMULATED DEPRECIATION / DEPLETION	$	(102,575,667	)	$	(97,766,051	)	$	(2,247,505	)	$	(2,279,315	)	$	0		$	0
10.	NET  PROPERTY,  PLANT  & EQUIPMENT	$	54,561,915		$	47,537,798		$	83,410		$	51,600		$	0		$	0
11.	DUE FROM INSIDERS	$	(854,896	)	$	2,767,061		$	1,664,808		$	1,664,808		$	1,664,808		$	1,664,808
12.	OTHER  ASSETS  -  NET  OF AMORTIZATION (2)	$	2,024,046		$	1,632,093		$	160,050		$	141,345		$	23		$	23
13.	OTHER (ATTACH LIST)
14.	TOTAL ASSETS	$	173,829,898		$	111,411,604		$	34,100,177		$	33,014,790		$	31,313,266		$	30,851,464
POSTPETITION LIABILITIES
15.	ACCOUNTS  PAYABLE				$	3,248,359		$	1,879,020		$	1,854,689		$	1,482,995		$	1,487,293
16.	TAXES  PAYABLE				$	4,471,126		$	270,370		$	170,287		$	72,794		$	72,776
17.	PROFESSIONAL  FEES				$	2,393,833		$	813,345		$	928,383		$	923,583		$	674,545
18.	DEFERRED REVENUE				$	18,041,877		$	0		$	0		$	0		$	0
19.	OTHER POST PETITION LIABILITIES				$	6,270,802		$	423,243		$	424,155		$	280,133		$	264,772
20.	TOTAL  POSTPETITION LIABILITIES				$	34,425,997		$	3,385,978		$	3,377,514		$	2,759,505		$	2,499,386
PREPETITION LIABILITIES
21.	SECURED  DEBT	$	71,824,592		$	0		$	0		$	0		$	0		$	0
22.	LIABILITIES SUBJECT TO COMPROMISE (3)	$	81,136,347		$	67,325,321		$	28,864,028		$	28,194,341		$	27,006,786		$	27,080,927
23.	TOTAL  PREPETITION  LIABILITIES	$	152,960,939		$	67,325,321		$	28,864,028		$	28,194,341		$	27,006,786		$	27,080,927
24.	TOTAL LIABILITIES	$	152,960,939		$	101,751,318		$	32,250,006		$	31,571,855		$	29,766,291		$	29,580,313
EQUITY
25.	PREPETITION  OWNERS'  EQUITY	$	20,868,959		$	20,868,959		$	20,868,959		$	20,868,959		$	20,868,959		$	20,868,959
26.	POSTPETITION  CUMULATIVE PROFIT  OR  (LOSS)				$	(11,208,673	)	$	(19,018,788	)	$	(19,426,024	)	$	(19,321,984	)	$	(19,597,808	)
27.	DIRECT  CHARGES  TO  EQUITY (ATTACH  EXPLANATION)
28.	TOTAL  EQUITY	$	20,868,959		$	9,660,286		$	1,850,171		$	1,442,935		$	1,546,975		$	1,271,151
29.	TOTAL  LIABILITIES  & OWNERS'  EQUITY	$	173,829,898		$	111,411,604		$	34,100,177		$	33,014,790		$	31,313,266		$	30,851,464

Notes:

[1] As historically reported on the Debtors' SEC filings, cash and cash equivalents includes cash in the operating accounts, credit card receivables, store depository accounts, and foreign office accounts.  In addition, cash and cash equivalents for the months ended after September 2007 include cash collateralized letters of credit.

[2] Balance includes capitalized software and other intangibles.

Item 6: Other Current Assets	Petition Date			December 2007			April 2008		May 2008		June 2008		July 2008
Employee Receivables	$	(3,176	)	$	9,150		$	1,912	$	1,230	$	0	$	0
Miscellaneous Receivables		1,188,193			1,303,630			1,501,523		1,350,434		1,335,434		810,631
DOM In transit - Non Merchandise		3,666			0			0		0		0		0
Deposits		311,825			2,731,914			1,798,396		1,610,341		1,504,466		960,936
Treasury Bond		37,922			37,922			37,922		37,922		37,922		37,922
Due from JV		0			0			0		0		0		0
Chase Merchant Services - MC/V Receivable		0			0			1,500,000		1,500,000		1,500,000		200,000
Intl Claim Receivable		(23,675	)		(23,675	)		0		0		0		0
	$	1,514,755		$	4,058,941		$	4,839,753	$	4,499,927	$	4,377,822	$	2,009,489
Item 19: Other Post Petition Liabilities
Accrued Expenses/Inventory				$	4,116,402		$	150,000	$	150,000	$	150,000	$	150,000
Customer Prepayments					(16,724	)		0		0		0		0
Accrued Salaries					2,171,124			273,243		274,155		130,133		114,772
				$	6,270,802		$	423,243	$	424,155	$	280,133	$	264,772

[3] During January 2008, the Debtors eliminated certain reserves and accruals as part of the Debtors' efforts to wind down the operations and financial records.  The decrease of liabilities subject to compromise, at the end of January 2008, does not signify payments being made on such liabilities.

[4] For presentation purposes, the Petition Date, quarter-end, and months within the current quarter have been reflected.  Please refer to prior monthly operating reports for previous months not shown.

2 of 9

CASE  NAME: The Bombay Company, Inc.

CASE  NUMBER: 07-44084-dml-11

INCOME STATEMENT
		9/20/07 to 12/31/07			1/1/08 to 3/31/08			4/1/08 to 6/30/08			July 2008			August 2008	September 2008	QUARTER
REVENUES		TOTAL			TOTAL			TOTAL								TOTAL
1.	GROSS  REVENUES	$	201,870,774		$	14,363,269		$	0		$	0				$	0
2.	LESS:  RETURNS & DISCOUNTS	$	(3,318,383	)	$	(239,828	)	$	0		$	0				$	0
3.	NET SALES	$	198,552,391		$	14,123,441		$	0		$	0				$	0
4.	DELIVERY INCOME	$	318,482		$	4,569		$	0		$	0				$	0
5.	NET REVENUE	$	198,870,873		$	14,128,010		$	0		$	0				$	0
COST  OF  GOODS  SOLD																	0
6.	STORE COGS	$	94,281,406		$	13,904,460		$	0		$	0				$	0
7.	SHRINK	$	1,783,774		$	1,297,376		$	0		$	0				$	0
8.	DC EXPENSE	$	5,604,388		$	1,067,764		$	(26,643	)	$	27,744				$	27,744
9.	DC FRIEGHT TO STORES	$	5,304,558		$	(25,730	)	$	0		$	0				$	0
10.	HOME OFFICE ADJUSTMENTS	$	4,743,215		$	(123,485	)	$	(73,829	)	$	(60	)			$	(60	)
11.	TOTAL  COST  OF  GOODS  SOLD	$	111,717,341		$	16,120,385		$	(100,472	)	$	27,684				$	27,684
12.	GROSS  PROFIT	$	87,153,532		$	(1,992,375	)	$	100,472		$	(27,684	)			$	(27,684	)
OPERATING  EXPENSES																	0
13.	BUYING AND OCCUPANCY COSTS	$	6,764,276		$	(31,714,565	)	$	(880,312	)	$	(131,143	)			$	(131,143	)
14.	PAYROLL	$	5,433,907		$	(196,271	)	$	513,465		$	84,459				$	84,459
15.	HOME OFFICE OCCUPANCY	$	1,257,963		$	371,270		$	368,706		$	46,864				$	46,864
16.	CREDIT AND COLLECTIONS	$	335,680		$	802,028		$	23,799		$	(10,576	)			$	(10,576	)
17.	GENERAL	$	(4,289,795	)	$	38,692,969		$	(213,371	)	$	7,493				$	7,493
18.	INSURANCE AND TAXES	$	2,971,891		$	(713,556	)	$	(353,396	)	$	11				$	11
19.	PROFESSIONAL  SERVICES	$	168,457		$	(10,515	)	$	29,969		$	35,788				$	35,788
20.	JV EXPENSE, NET	$	86,257,567		$	(1,928,374	)	$	0		$	0				$	0
21.	OTHER (Training, travel, public company exp.)	$	222,067		$	86,636		$	8,571		$	6,277				$	6,277
22.	TOTAL  OPERATING  EXPENSES	$	99,122,014		$	5,389,622		$	(502,569	)	$	39,173				$	39,173
23.	INCOME  BEFORE  NON-OPERATING															$	0
24.	INCOME & EXPENSE	$	(11,968,482	)	$	(7,381,997	)	$	603,041		$	(66,857	)			$	(66,857	)
OTHER  INCOME  &  EXPENSES																	0
25.	NON-OPERATING INCOME (ATT.  LIST) (3)	$	12,996,875		$	1,240,093		$	67,301		$	14,199				$	14,199
26.	NON-OPERATING EXPENSE (ATT.  LIST)	$	4,270		$	0		$	0							$	0
27.	INTEREST  EXPENSE	$	543,587		$	0		$	0							$	0
28.	DEPRECIATION / DEPLETION	$	0		$	0		$	0							$	0
29.	AMORTIZATION	$	0		$	0		$	0							$	0
30.	ROYALTY FEE	$	910,617		$	0		$	0							$	0
31.	NET  OTHER INCOME & EXPENSES	$	(11,538,401	)	$	(1,240,093	)	$	(67,301	)	$	14,199				$	14,199
REORGANIZATION  EXPENSES																	0
32.	PROFESSIONAL  FEES	$	7,044,676		$	1,394,140		$	1,069,295		$	223,166				$	223,166
33.	U.S.  TRUSTEE  FEES	$	1,500		$	0		$	14,625		$	0				$	0
34.	OTHER (2)	$	3,732,844		$	0		$	0		$	0				$	0
35.	TOTAL  REORGANIZATION  EXPENSES	$	10,779,020		$	1,394,140		$	1,083,920		$	223,166				$	223,166
36.	INCOME  TAX	$	(428	)	$	39,539		$	124,150		$	0				$	0
37.	NET  PROFIT  (LOSS)	$	(11,208,673	)	$	(7,575,583	)	$	(537,728	)	$	(275,824	)			$	(275,824	)

3 of 9

CASE  NAME: The Bombay Company, Inc.

CASE  NUMBER: 07-44084-dml-11

CASH  RECEIPTS  AND		9/20 to 12/31/07			1/1/08 to 3/31/08			4/1/08 to 6/30/08			July 2008		August 2008	September 2008	QUARTER
DISBURSEMENTS		TOTAL			TOTAL			TOTAL							TOTAL
1.	CASH - BEGINNING  OF  MONTH	$	881,175		$	10,543,219		$	21,228,504		$	18,941,087			$	18,941,087
RECEIPTS  FROM  OPERATIONS
2	TOTAL  OPERATING  RECEIPTS	$	189,541,305		$	21,752,716		$	0		$	0			$	0
	NON - OPERATING RECEIPTS
3	LOANS  &  ADVANCES  (REPAYMENT)	$	5,998,804												$	0
4	SALE  OF  ASSETS	$	37,122,607		$	16,722,419		$	0		$	0			$	0
5	REIMBURSEMENT (TO)/FROM LIQUIDATORS	$	(130,545,563	)	$	(9,257,036	)	$	92,489		$	54,803			$	54,803
6	OTHER  (ATTACH  LIST)	$	0		$	3,661,198		$	987,074		$	2,754,261			$	2,754,261
7	TOTAL  NON-OPERATING  RECEIPTS	$	(87,424,152	)	$	11,126,581		$	1,079,563		$	2,809,064			$	2,809,064
8	TOTAL  RECEIPTS	$	102,117,153		$	32,879,297		$	1,079,563		$	2,809,064			$	2,809,064
9	TOTAL  CASH  AVAILABLE	$	102,998,328		$	53,101,742		$	62,657,185		$	21,750,151			$	21,750,151
OPERATING  DISBURSEMENTS
10	PAYROLL, PAYROLL TAXES, BENEFITS	$	23,395,881		$	9,406,716		$	972,274		$	115,897			$	115,897
11	SALES,  USE  &  OTHER  TAXES  PAID	$	10,365,311		$	6,472,545		$	63,876		$	49,684			$	49,684
12	MERCHANDISE	$	11,828,206		$	63,986		$	0		$	0			$	0
13	GENERAL AP	$	3,471,309		$	327,953		$	570,539		$	48,111			$	48,111
14	RENT & OCCUPANCY	$	26,016,571		$	1,363,876		$	245,850		$	95,723			$	95,723
15	FREIGHT	$	5,714,718		$	216,980		$	945		$	0			$	0
16	CRITICAL VENDOR PAYMENTS	$	2,838,397		$	0		$	0						$	0
17	OTHER  (ATTACH  LIST)	$	4,030,155		$	1,229,590		$	251,833		$	40,796			$	40,796
18	TOTAL  OPERATING  DISBURSEMENTS	$	87,660,548		$	19,081,645		$	2,105,317		$	350,211			$	350,211
REORGANIZATION  EXPENSES
19	PROFESSIONAL  FEES	$	3,194,296		$	2,842,246		$	1,054,606		$	493,958			$	493,958
20	U.S.  TRUSTEE  FEES	$	1,500												$	0
21	OTHER  (ATTACH  LIST)	$	1,598,766		$	270,120		$	192,432		$	7,000			$	7,000
22	TOTAL  REORGANIZATION  EXPENSES	$	4,794,562		$	3,112,366		$	1,261,663		$	500,958			$	500,958
23	TOTAL  DISBURSEMENTS (1)	$	92,455,110		$	22,194,011		$	3,366,980		$	851,169			$	851,169
24	NET  CASH  FLOW	$	9,662,044		$	10,685,285		$	(2,287,417	)	$	1,957,895			$	1,957,895
25	CASH - END OF MONTH (2)	$	10,543,219		$	21,228,504		$	18,941,087		$	20,898,982			$	20,898,982

Note:

[1] All of the Debtors' disbursements are made from The Bombay Company, Inc. (Case No. 07-44084-dml-11) and The Bombay Furniture Company, Inc. (Case No. 07-44085-dml-11).  Disbursements by Debtor have been are as follows:

	1/1/08 to 3/31/08		4/1/08 to 6/30/08				7/1/08 to 9/30/08
Total Disbursements	TOTAL		TOTAL		July 2008		Total Disbursements
The Bombay Company, Inc. (07-44084-dml-11)	$	22,189,911	$	3,366,980	$	851,169	$	851,169
The Bombay Furniture Company, Inc. (07-44085-dml-11)	$	4,100						-
	$	22,194,011	$	3,366,980	$	851,169	$	851,169

[2] Receipts and disbursements for March 2008 are through March 28, 2008

	1/1/08 to 3/31/08		4/1/08 to 6/30/08				7/1/08 to 9/30/08
	TOTAL		TOTAL		July 2008		Total Disbursements
Item 6: Other Receipts
LC Cash Collateral Returned					$	540,752	$	540,752
Home Office Receipts	$	1,510,998	$	987,074		142,344		142,344
US IP		2,000,000		-		-		-
Credit Card Holdbacks Returned						1,750,000		1,750,000
Legal Fee Reimburse from Canada		-		-		321,165		321,165
Total	$	3,510,998	$	987,074	$	2,754,261	$	2,754,261
Item 17: Other Operating Disbursements
International Offices								-
Other Admin Expense								-
Other Corporate Expense			$	251,833	$	40,796		40,796
Inventory Taking				-				-
Total	$	-	$	251,833	$	40,796	$	40,796
Item 21: Other Reorganization Expenses
Completion Bonus				192,432		7,000		7,000
Total	$	-	$	192,432	$	7,000	$	7,000

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	Monthly Operating Report
CASE  NAME: The Bombay Company, Inc.	ACCRUAL BASIS-4
CASE  NUMBER: 07-44084-dml-11

		SCHEDULE		MONTH			MONTH			MONTH		MONTH		MONTH
ACCOUNTS  RECEIVABLE  AGING (1)		AMOUNT		Oct-07			Dec-07			May-08		Jun-08		Jul-08
1.	0-30			$	0		$	0		$	0	$	0	$	0
2.	31-60			$	0		$	0		$	0	$	0	$	0
3.	61-90			$	0		$	0		$	0	$	0	$	0
4.	91+			$	987,208		$	987,208		$	0	$	0	$	0
5.	TOTAL  ACCOUNTS  RECEIVABLE	$	0	$	987,208		$	987,208		$	0	$	0	$	0
6.	AMOUNT  CONSIDERED  UNCOLLECTIBLE			$	(768,319	)	$	(768,319	)	$	0	$	0	$	0
7.	ACCOUNTS  RECEIVABLE  (NET)	$	0	$	218,889		$	218,889		$	0	$	0	$	0

AGING OF POSTPETITION TAXES AND PAYABLES						MONTH:		July 2008
		0-30		31-60		61-90		91+
TAXES  PAYABLE		DAYS		DAYS		DAYS		DAYS		TOTAL
1.	FEDERAL	$	0
2.	STATE	$	0
3.	LOCAL	$	0
4.	SALES TAX	$	0							$	0
5.	TOTAL  TAXES  PAYABLE	$	0	$	0	$	0	$	0	$	0

STATUS  OF  POSTPETITION  TAXES				MONTH:		July 2008
		BEGINNING		AMOUNT				ENDING
		TAX		WITHHELD AND/		AMOUNT		TAX
FEDERAL		LIABILITY*		0R ACCRUED		PAID		LIABILITY
1.	WITHHOLDING	$	0	$	13,484	$	13,484	$	0
2.	FICA-EMPLOYEE	$	0	$	4,317	$	4,317	$	0
3.	FICA-EMPLOYER	$	1,419	$	3,637	$	4,317	$	739
4.	UNEMPLOYMENT	$	0	$	1	$	1	$	0
5.	INCOME	$	0	$	0	$	0	$	0
6.	OTHER PAYROLL TAXES	$	416	$	2,530	$	2,689	$	257
7.	TOTAL  FEDERAL  TAXES	$	1,835	$	23,968	$	24,806	$	996

STATE  AND  LOCAL
8.	WITHHOLDING	$	0	$	0	$	0	$	0
9.	SALES	$	0	$	0	$	0	$	0
10.	EXCISE	$	0	$	0	$	0	$	0
11.	UNEMPLOYMENT	$	1	$	0	$	0	$	1
12.	OTHER PAYROLL TAXES	$	0	$	0	$	0	$	0
13.	REAL  PROPERTY	$	59,846	$	0	$	0	$	59,846
14	PERSONAL  PROPERTY	$	393,240	$	0		49,684	$	343,556
15	FRANCHISE	$	42,903	$	821		-	$	43,724
16	BUSINESS LICENSE TAX	$	16,176	$	0		-	$	16,176
17	TOTAL  STATE  &  LOCAL	$	512,167	$	821	$	49,684	$	463,304
18	TOTAL  TAXES	$	514,001	$	24,789	$	74,490	$	464,300

* The beginning tax liability should represent the liability from the prior month or, if this is the first operating report, the amount should be zero.

[1] For presentation purposes, quarter-end and months within the current quarter have been reflected.  Please refer to prior monthly operating reports for previous months not shown.

5 of 9

	Monthly Operating Report
CASE  NAME: The Bombay Company, Inc.	ACCRUAL BASIS-5
CASE  NUMBER: 07-44084-dml-11

The debtor in possession must complete the reconciliation below for each bank account, including all general, payroll and tax accounts, as well as all savings and investment accounts, money market accounts, certificates of deposit, government obligations, etc. Accounts with restricted funds should be identified by placing an asterisk next to the account number. Attach additional sheets if necessary.

		MONTH:							July 2008
BANK  RECONCILIATIONS
		Account #1		Account #2		Account #3			Account #4
A.          BANK:		Wells Fargo		Wells Fargo		Wells Fargo			Wells Fargo
B.           ACCOUNT  NUMBER:		412-1166318		412-1166300		960-0058583			960-0058598
C.           PURPOSE  (TYPE):		Concentrator		Blocked		Accounts Payable			Payroll
1.	BALANCE  PER  BANK  STATEMENT	$	21,316,896.96	$	-	$	-		$	-
2.	ADD:  TOTAL  DEPOSITS  NOT  CREDITED	$	-			$	-		$	-
3.	SUBTRACT:  OUTSTANDING  CHECKS					$	(290,621.91	)	$	(43,544.69	)
4.	OTHER  RECONCILING  ITEMS	$	-			$	95,162.12		$	14,541.63
5.	MONTH  END  BALANCE  PER  BOOKS	$	21,316,896.96			$	(195,459.79	)	$	(29,003.06	)
6.	NUMBER  OF  LAST  CHECK  WRITTEN						1178688			510382

INVESTMENT ACCOUNTS
		DATE OF	TYPE OF	PURCHASE		CURRENT
BANK,  ACCOUNT  NAME  &  NUMBER		PURCHASE	INSTRUMENT	PRICE		VALUE
7.	NONE
8.
9.
10.
11.	TOTAL  INVESTMENTS			$	0	$	0

CASH
12.	CURRENCY ON HAND	$	0
13.	TOTAL  CASH  -  END  OF MONTH	$	21,092,434.11

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	Monthly Operating Report
CASE  NAME: The Bombay Company, Inc.	ACCRUAL BASIS-6
CASE  NUMBER: 07-44084-dml-11

	MONTH:	July 2008
PAYMENTS  TO  INSIDERS  AND  PROFESSIONALS

OF THE TOTAL DISBURSEMENTS SHOWN FOR THE MONTH, LIST THE AMOUNT PAID TO INSIDERS (AS DEFINED IN SECTION 101 (31) (A)-(F) OF THE U.S. BANKRUPTCY CODE) AND TO PROFESSIONALS. ALSO, FOR PAYMENTS TO INSIDERS, IDENTIFY THE TYPE OF COMPENSATION PAID (e.g. SALARY, BONUS, COMMISSIONS, INSURANCE, HOUSING ALLOWANCE, TRAVEL, CAR ALLOWANCE, ETC.). ATTACH ADDITIONAL SHEETS IF NECESSARY.

INSIDERS
		TYPE  OF	AMOUNT		TOTAL PAID
	NAME	PAYMENT	PAID (1)		TO DATE
1.	Elaine D. Crowley	Salary	$	23,092	$	267,836
2.	Don Roach	Salary	$	0	$	217,709
3.	Dave Stewart	Salary	$	0	$	88,758
4.	Steve Woodward	Salary	$	0	$	18,339
5.	Mike Veitenheimer	Salary	$	0	$	87,710
6	Linda Stephenson	Salary	$	0	$	85,596
7	Don Roach	Bonus	$	0	$	49,903
8	Elaine D. Crowley	Expense Reimbursement	$	0	$	1,345
9	Don Roach	Expense Reimbursement	$	0	$	987
10	TOTAL  PAYMENTS TO  INSIDERS		$	23,092	$	818,183

PROFESSIONALS
		DATE OF COURT								TOTAL
		ORDER AUTHORIZING		AMOUNT		AMOUNT		TOTAL PAID		INCURRED
	NAME	PAYMENT (2)(3)		APPROVED (2)		PAID		TO DATE		& UNPAID *
1.	Asset Disposition Advisors (1)		N/A	$	0	$	0		769,331	$	510,456
2.	Baker McKenzie		N/A		17,008	$	17,008		192,860		5,664
3.	Haynes and Boone		N/A		147,641	$	147,641		1,505,115		79,385
4.	FTI Consulting, Inc. (1)		N/A		11,576	$	11,576		1,620,402		1,100,252
5.	Mesirow Financial		N/A		11,184	$	11,184		204,391		7,501
6	Cooley Godward Kronish		N/A		143,025	$	143,025		1,358,415		39,812
7	Forshey and Prostok		N/A		3,536	$	3,536		168,306		49,503
8	Financial Dynamics		N/A		-	$	0		47,200		-
9	Lang Mitchner		N/A		8,720	$	8,720		107,300		2,986
10	Alix Partners		N/A		129,626	$	129,626		1,667,827		120,000
11	TOTAL PAYMENTS TO  PROFESSIONALS			$	472,315	$	472,315	$	7,641,146	$	1,915,560

* INCLUDE ALL FEES INCURRED, BOTH APPROVED AND UNAPPROVED

POSTPETITION STATUS OF SECURED NOTES, LEASES PAYABLE AND ADEQUATE
PROTECTION PAYMENTS
		SCHEDULED		AMOUNTS
		MONTHLY		PAID		TOTAL
		PAYMENTS		DURING		UNPAID
NAME OF CREDITOR		DUE		MONTH		POSTPETITION
1.			-		0		-
2	TOTAL	$	-	$	0		-

Note:

[1] Professional fees include accrued and unpaid success fees for FTI Consulting, Inc. and Asset Disposition Advisors of $1 million and $500,000, respectively.

[2] Per the administrative Order Establishing Procedures for Interim Compensation and Reimbursement of Expenses of Professionals and Committee Members (the “Administrative Order”), entered October 17, 2007, professionals may be paid eighty percent (80%) of the fees and one hundred percent (100%) of the out-of-pocket expenses as set forth in the applicable monthly fee statement if no objections are made within ten (10) days after submission.  On March 6 , 2008, an order was entered to approve interim professional fees for the period of September 20, 2007 through December 31, 2007

[3] Per the administrative Order Establishing Procedures for Interim Compensation and Reimbursement of Expenses of Professionals and Committee Members (the “Administrative Order”), entered October 17, 2007, professionals may be paid eighty percent (80%) of the fees and one hundred percent (100%) of the out-of-pocket expenses as set forth in the applicable monthly fee statement if no objections are made within ten (10) days after submission.  On July 21 , 2008, an order was entered to approve the second interim application of professional fees for the period from January 1, 2008 through April 30, 2008 for all professionals except Asset Disposition Advisors and FTI Consulting, Inc.  On August 12, 2008, such fees for Asset Disposition Advisors and FTI Consulting were approved however payment of the 20% holdback was prohibited pending further orders from the Court.

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	Monthly Operating Report
CASE  NAME: The Bombay Company, Inc.	ACCRUAL  BASIS-7
CASE  NUMBER: 07-44084-dml-11
	MONTH:	July 2008

QUESTIONNAIRE
		YES	NO
1.	HAVE  ANY  ASSETS  BEEN  SOLD  OR  TRANSFERRED  OUTSIDE THE NORMAL COURSE OF BUSINESS THIS REPORTING PERIOD?	X [1]
2.	HAVE  ANY  FUNDS  BEEN  DISBURSED  FROM  ANY  ACCOUNT OTHER THAN A DEBTOR IN POSSESSION ACCOUNT		X
3.	ARE ANY POSTPETITION  RECEIVABLES (ACCOUNTS, NOTES, OR LOANS) DUE FROM RELATED PARTIES?	X [2]
4.	HAVE  ANY  PAYMENTS  BEEN  MADE  ON  PREPETITION  LIABILITIES THIS REPORTING PERIOD?	X [3]
5.	HAVE  ANY  POSTPETITION  LOANS  BEEN  RECEIVED BY THE DEBTOR FROM ANY PARTY?		X
6.	ARE  ANY  POSTPETITION  PAYROLL  TAXES  PAST  DUE?		X
7.	ARE  ANY  POSTPETITION  STATE  OR  FEDERAL  INCOME  TAXES PAST DUE?		X
8.	ARE  ANY  POSTPETITION  REAL  ESTATE  TAXES  PAST  DUE?		X
9.	ARE  ANY OTHER POSTPETITION  TAXES  PAST  DUE?		X
10.	ARE  ANY  AMOUNTS  OWED  TO  POSTPETITION  CREDITORS DELINQUENT?		X
11.	HAVE  ANY  PREPETITION  TAXES  BEEN  PAID  DURING  THE REPORTING PERIOD?		X
12.	ARE ANY WAGE PAYMENTS PAST DUE?		X

IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS "YES," PROVIDE A DETAILED EXPLANATION OF EACH ITEM. ATTACH ADDITIONAL SHEETS IF NECESSARY.

[1] During the reporting period, the Debtors have continued to sell the furniture, fixtures, machinery and equipment and store leases as part of the Debtors' liquidation process approved by the Bankruptcy Court.

[2] As of the end of the reporting period, intercompany receivables exist with The Bombay Furniture Company of Canada, Inc.

[3] As authorized by certain first day orders entered by the Bankruptcy Court, the Debtors have made certain permitted payments on pre-petition claims.

8 of 9

	Monthly Operating Report
CASE  NAME: The Bombay Company, Inc.	ACCRUAL  BASIS-7
CASE  NUMBER: 07-44084-dml-11
	MONTH:	July 2008

QUESTIONNAIRE

INSURANCE

		YES	NO
1.	ARE  WORKER'S COMPENSATION, GENERAL LIABILITY AND OTHER NECESSARY INSURANCE COVERAGES IN EFFECT?	X
2.	ARE  ALL  PREMIUM  PAYMENTS  PAID  CURRENT?	X
3.	PLEASE  ITEMIZE  POLICIES  BELOW.

IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS "NO," OR IF ANY POLICIES HAVE BEEN CANCELLED OR NOT RENEWED DURING THIS REPORTING PERIOD, PROVIDE AN EXPLANATION BELOW.  ATTACH ADDITIONAL SHEETS IF NECESSARY.

INSTALLMENT  PAYMENTS
TYPE  OF			PAYMENT AMOUNT
POLICY	CARRIER	PERIOD COVERED	& FREQUENCY
General Liability	Federal (Chubb)	January 31, 2008 through August 31, 2008	Annual premium paid to date
Workers Compensation	Federal (Chubb)	January 31, 2008 through August 31, 2008	Annual premium paid to date
Property, Boiler & Machinery	Lexington	Feb 1, 2008 through January 31, 2009	Annual premium paid to date

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