**FORM      10-Q**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**(Mark      one)**

**       **
**x**
**                      QUARTERLY      REPORT      PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF      1934**

**OR**

**       **
**¨**
**                      TRANSITION      REPORT      PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF      1934**

**For      the transition period from ___________ to ___________**

**Commission      File Number **
**1-7288**

**THE      BOMBAY COMPANY, INC.**

| **Delaware**                                                                                |   | **75-1475223**                                                    |
|---------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------|
| (State                or other jurisdiction ofincorporation                or organization) |   | (I.R.S.                EmployerIdentification                No.) |
|                                                                                        |   |                                                              |
| **550                Bailey Avenue, Fort Worth, Texas**                                     |   | **76107**                                                         |
| (Address                of principal executive offices)                                     |   | (Zip                Code)                                         |

| **(817)                347-8200**                                                  |
|------------------------------------------------------------------------------------|
| (Registrant's                telephone number, including area                code) |

|   |
|--------|

| Class                                     |   | Number                of shares outstanding at November 25, 2005 |
|-------------------------------------------|--------|------------------------------------------------------------------|
| Common                stock, $1 par value |   | 36,362,901                                                       |

----

| Item                                                                                                                         | Page                No. |
|------------------------------------------------------------------------------------------------------------------------------|-------------------------|
| 1.                Financial Statements                                                                                       | 3-12                    |
| Consolidated                Statement of Operations                                                                          | 3                       |
| Consolidated                Balance Sheets                                                                                   | 4                       |
| Consolidated                Statement of Cash Flows                                                                          | 5                       |
|                                                                                                                         |                    |
| 2.                Management’s Discussion and Analysis of Financial Condition and Results of                Operations | 13-21                   |
| General                                                                                                                      | 13                      |
| Restatement                of Previously Issued Financial                Statements                                          | 14                      |
| Executive                Summary                                                                                             | 15                      |
| Results                of Operations                                                                                         | 16-19                   |
| Liquidity                and Capital Resources                                                                               | 19                      |
| Critical                Accounting Policies                                                                                  | 20                      |
| New                Accounting Pronouncements                                                                                 | 21                      |
|                                                                                                                         |                    |
| 3.                Quantitative and Qualitative Disclosures About Market                Risk                                  | 22                      |
|                                                                                                                         |                    |
| 4.                Controls and Procedures                                                                                    | 22                      |
|                                                                                                                         |                    |
| PART                II - OTHER INFORMATION                                                                                   |                    |
|                                                                                                                         |                    |
| 5.                Legal Proceedings                                                                                          | 23                      |
|                                                                                                                         |                    |
| 6.                Exhibits                                                                                                   | 23                      |
|                                                                                                                         |                    |
| 7.                Signatures                                                                                                 | 24                      |
|                                                                                                                         |                    |
|                                                                                                                         |                    |

----

| THE                BOMBAY COMPANY, INC. AND SUBSIDIARIES    |   |
|-------------------------------------------------------------|--------|
| Consolidated                Statements of Operations        |   |
| (In                thousands, except per share amounts)     |   |
| (Unaudited)                                                 |   |
|                                                        |   |
|                                                        |   | Three                Months Ended |   | Nine                Months Ended |   |
|                                                        |   | Oct.                29, |   | Oct.                30, |   | Oct.                29, |   | Oct.                30, |   |
|                                                        |   | 2005 |   | 2004 |   | 2005 |   | 2004 |   |
|                                                        |   |   |   | (restated) |   |   |   | (restated) |   |
|                                                        |   |   |   |   |   |   |   |   |   |
| Net                revenue                                  |   | $ | 128,062 |   | $ | 126,669 |   | $ | 378,220 |   | $ | 372,729 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Costs                and expenses:                          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Costs                of sales, buying and                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| store                occupancy costs                        |   |   | 96,504 |   |   | 94,922 |   |   | 294,205 |   |   | 283,624 |   |
| Selling,                general and administrative expenses |   |   | 40,895 |   |   | 41,805 |   |   | 119,931 |   |   | 118,674 |   |
| Gain                on sale of assets                       |   |   | -- |   |   | -- |   |   | (560 | ) |   | -- |   |
|  Operating                loss                         |   |   | (                9,337 | ) |   | (10,058 | ) |   | (35,356 | ) |   | (29,569 | ) |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                income (expense):                      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gain                on sale of non-operating assets         |   |   | 4,130 |   |   | -- |   |   | 4,130 |   |   | -- |   |
| Interest                income                              |   |   | 10 |   |   | 14 |   |   | 27 |   |   | 45 |   |
| Interest                expense                             |   |   | (980 | ) |   | (332 | ) |   | (1,827 | ) |   | (328 | ) |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss                before income taxes                |   |   | (6,177 | ) |   | (10,376 | ) |   | (33,026 | ) |   | (29,852 | ) |
| Benefit                for income taxes                     |   |   | (2,048 | ) |   | (3,048 | ) |   | (11,526 | ) |   | (10,449 | ) |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                loss                                     |   | $ | (4,129 | ) | $ | (7,328 | ) | $ | (21,500 | ) | $ | (19,403 | ) |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                and diluted loss per share             |   | $ | (0.11 | ) | $ | (0.20 | ) | $ | (0.59 | ) | $ | (0.54 | ) |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average                common shares outstanding            |   |   | 36,349 |   |   | 35,834 |   |   | 36,169 |   |   | 35,644 |   |

----

|  THE                BOMBAY COMPANY, INC. AND SUBSIDIARIES                                                        |   |
|-----------------------------------------------------------------------------------------------------------------------|--------|
| Consolidated                Balance Sheets                                                                            |   |
| (Dollars                in thousands)                                                                                 |   |
| (Unaudited)                                                                                                           |   |
|                                                                                                                  |   |  Oct.                29, |   | January                29, |   | Oct                30, |   |
|                                                                                                                  |   | 2005 |   | 2005 |   | 2004 |   |
|                                                                                                                  |   |    |   |   |   | (restated) |   |
| ASSETS                                                                                                                |   |    |   |   |   |   |   |
| Current                assets:                                                                                        |   |    |   |   |   |   |   |
| Cash                and cash equivalents                                                                              |   | $ | 7,688 |   | $ | 9,168 |   | $ | 15,053 |   |
| Inventories                                                                                                           |   |   | 176,302 |   |   | 144,702 |   |   | 171,744 |   |
| Other                current assets                                                                                   |   |   | 32,521 |   |   | 27,022 |   |   | 30,798 |   |
| Total                current assets                                                                                   |   |   | 216,511 |   |   | 180,892 |   |   | 217,595 |   |
|                                                                                                                  |   |   |   |   |   |   |   |   |   |   |
| Property                & equipment, net of accumulated depreciation                                              |   |   |   |   |   |   |   |   |   |   |
| of                $98,397; $94,284 and $92,335, respectively                                                          |   |   | 95,120 |   |   | 92,012 |   |   | 87,619 |   |
| Goodwill,                less amortization                                                                            |   |   | 423 |   |   | 423 |   |   | 423 |   |
| Other                assets                                                                                           |   |   | 14,914 |   |   | 10,846 |   |   | 10,698 |   |
| Total                assets                                                                                           |   | $ | 326,968 |   | $ | 284,173 |   | $ | 316,335 |   |
|                                                                                                                  |   |   |   |   |   |   |   |   |   |   |
| LIABILITIES                AND STOCKHOLDERS' EQUITY                                                                   |   |   |   |   |   |   |   |   |   |   |
| Current                liabilities:                                                                                   |   |   |   |   |   |   |   |   |   |   |
| Bank                borrowings                                                                                        |   | $ | 62,218 |   | $ | -- |   | $ | 51,490 |   |
| Accounts                payable and accrued expenses                                                                  |   |   | 43,965 |   |   | 48,997 |   |   | 45,063 |   |
| Accrued                payroll and bonuses                                                                            |   |   | 3,134 |   |   | 5,660 |   |   | 2,660 |   |
| Gift                certificates redeemable                                                                           |   |   | 8,042 |   |   | 8,312 |   |   | 6,507 |   |
| Accrued                insurance                                                                                      |   |   | 4,997 |   |   | 4,081 |   |   | 4,150 |   |
| Total                current liabilities                                                                              |   |   | 122,356 |   |   | 67,050 |   |   | 109,870 |   |
|                                                                                                                  |   |   |   |   |   |   |   |   |   |   |
| Accrued                rent and other noncurrent liabilities                                                          |   |   | 41,367 |   |   | 35,192 |   |   | 31,966 |   |
| Commitments                and contingencies                                                                          |   |   | -- |   |   | -- |   |   | -- |   |
| Stockholders'                equity:                                                                                  |   |   |   |   |   |   |   |   |   |   |
| Preferred                stock, $1 par value,                                                                         |   |   |   |   |   |   |   |   |   |   |
| 1,000,000                shares authorized                                                                            |   |   | -- |   |   | -- |   |   | -- |   |
| Common                stock, $1 par value, 50,000,000                                                                 |   |   |   |   |   |   |   |   |   |   |
| shares                authorized, 38,149,646 shares issued                                                            |   |   | 38,150 |   |   | 38,150 |   |   | 38,150 |   |
| Additional                paid-in capital                                                                             |   |   | 79,910 |   |   | 79,700 |   |   | 79,835 |   |
| Retained                earnings                                                                                      |   |   | 52,237 |   |   | 73,737 |   |   | 66,539 |   |
| Accumulated                other comprehensive income                                                                 |   |   | 1,676 |   |   | 944 |   |   | 1,182 |   |
| Common                shares in treasury, at cost, 1,788,078;                                                         |   |   |   |   |   |   |   |   |   |   |
| 2,259,261                and 2,297,407 shares, respectively                                                           |   |   | (7,338 | ) |   | (9,268 | ) |   | (9,404 | ) |
| Deferred                compensation                                                                                  |   |   | (1,390 | ) |   | (1,332 | ) |   | (1,803 | ) |
| Total                stockholders' equity                                                                             |   |   | 163,245 |   |   | 181,931 |   |   | 174,499 |   |
| Total                liabilities and stockholders' equity                                                             |   | $ | 326,968 |   | $ | 284,173 |   | $ | 316,335 |   |
|                                                                                                                  |   |   |   |   |   |   |   |   |   |   |
| The                accompanying notes are an integral part of these consolidated financial                statements. |   |   |   |

----

|                                                                                                                            |   |
|---------------------------------------------------------------------------------------------------------------------------------|--------|
| THE                  BOMBAY COMPANY, INC. AND SUBSIDIARIES                                                                      |   |
| Consolidated                  Statements of Cash Flows                                                                          |   |
| (Dollars                  in thousands)                                                                                         |   |
| (Unaudited)                                                                                                                     |   |
|                                                                                                                            |   | Nine                  Months Ended |   |
|                                                                                                                            |   | Oct.                  29, |   | Oct.                  30, |   |
|                                                                                                                            |   | 2005 |   | 2004 |   |
|                                                                                                                            |   |   |   | (restated) |   |
| Cash                  flows from operating activities:                                                                          |   |   |   |   |   |
| Net                  loss                                                                                                       |   | $ | (21,500 | ) | $ | (19,403 | ) |
| Adjustments                  to reconcile net loss                                                                              |   |   |   |   |   |   |   |
| to                  net cash used in operating activities:                                                                      |   |   |   |   |   |   |   |
|  Depreciation                  and amortization                                                                            |   |   | 14,016 |   |   | 13,042 |   |
|  Restricted                  stock expense                                                                                 |   |   | 1,178 |   |   | 724 |   |
|  Gain                  on sale of assets (see Notes 3 and 4)                                                               |   |   | (4,690 | ) |   | -- |   |
|  Deferred                  taxes and other                                                                                 |   |   | (3,224 | ) |   | (7,771 | ) |
| Change                  in assets & liabilities (excluding effect of Bailey Street                  sale):                  |   |   |   |   |   |   |   |
|  Increase                  in inventories                                                                                  |   |   | (30,706 | ) |   | (31,331 | ) |
|  Increase                  in other assets                                                                                 |   |   | (9,767 | ) |   | (3,825 | ) |
|  Increase                  (decrease) in current liabilities                                                               |   |   | (7,126 | ) |   | 3,467 |   |
|  Increase                  in noncurrent liabilities                                                                       |   |   | 1,582 |   |   | 1,045 |   |
| Landlord                  construction allowances                                                                               |   |   | 6,546 |   |   | 8,540 |   |
| Net                  cash used in operating activities                                                                          |   |   | (53,691 | ) |   | (35,512 | ) |
| Cash                  flows from investing activities:                                                                          |   |   |   |   |   |   |   |
|  Purchases                  of property and equipment                                                                 |   |   | (16,347 | ) |   | (26,815 | ) |
|  Proceeds                  from sale of assets (see Notes 3 and 4)                                                    |   |   | 5,992 |   |   | -- |   |
|  Proceeds                  from sales of property and equipment                                                            |   |   | 4 |   |   | 9 |   |
| Net                  cash used in investing activities                                                                          |   |   | (10,351 | ) |   | (26,806 | ) |
| Cash                  flows from financing activities:                                                                          |   |   |   |   |   |   |   |
|  Net                  bank borrowings                                                                                      |   |   | 62,218 |   |   | 51,490 |   |
|  Sale                  of stock to employee benefit plans                                                                  |   |   | 145 |   |   | 247 |   |
| Proceeds                  from the exercise of employee stock options                                                           |   |   | 671 |   |   | 610 |   |
| Net                  cash provided by financing activities                                                                      |   |   | 63,034 |   |   | 52,347 |   |
| Effect                  of exchange rate change on cash and cash equivalents                                                    |   |   | (472 | ) |   | (595 | ) |
| Net                  decrease in cash and cash equivalents                                                                      |   |   | (1,480 | ) |   | (10,566 | ) |
| Cash                  and cash equivalents at beginning of period                                                               |   |   | 9,168 |   |   | 25,619 |   |
| Cash                  and cash equivalents at end of period                                                                     |   | $ | 7,688 |   | $ | 15,053 |   |
| Supplemental                  disclosure of cash flow information:                                                              |   |   |   |   |   |   |   |
| Interest                  paid                                                                                                  |   | $ | 1,639 |   | $ | 269 |   |
| Income                  taxes paid                                                                                              |   |   | 327 |   |   | 2,172 |   |
| Non-cash                  investing and financing activities:                                                                   |   |   |   |   |   |   |   |
| Issuance                  of restricted stock, net of cancellations                                                        |   |   | 1,212 |   |   | 1,675 |   |
| Distribution                  of director fees                                                                                  |   |   | 132 |   |   | -- |   |
| Capitalization                  of construction period rent                                                                     |   |   | 843 |   |   | 1,149 |   |
|  The                  accompanying notes are an integral part of these consolidated financial                  statements. |   |   |   |

----

|                                                                           |   | As                Reported |    | Impact                of Restatement |   | As                Restated |   |
|--------------------------------------------------------------------------------|--------|----------------------------|---------|--------------------------------------|--------|----------------------------|--------|
| **Consolidated                Balance Sheet**                                  |   |                       |    |                                 |   |                       |   |
| Property                and equipment, net                                     |   | $                          | 82,489  |                                 | $      | 5,130                      |   | $ | 87,619 |   |
| Other                assets                                                    |   |                       | 10,452  |                                 |   | 246                        |   |   | 10,698 |   |
| Total                assets                                                    |   |                       | 310,959 |                                 |   | 5,376                      |   |   | 316,335 |   |
| Accrued                rent and other long                term liabilities     |   |                       | 26,177  |                                 |   | 5,789                      |   |   | 31,966 |   |
| Retained                earnings                                               |   |                       | 66,952  |                                 |   | (413                       | )      |   | 66,539 |   |
| Total                stockholders’ equity                                |   |                       | 174,912 |                                 |   | (413                       | )      |   | 174,499 |   |
| Total                liabilities and stockholders’                equity |   |                       | 310,959 |                                 |   | 5,376                      |   |   | 316,335 |   |

----

|                                                                                |   | Fiscal                Quarter Ended October 30, 2004    |                             |
|-------------------------------------------------------------------------------------|--------|---------------------------------------------------------|----------------------------------|
|                                                                                |   | As                Reported                              |                             | Impact                of Restatement |   | As                Restated |   |
| **Consolidated                Statement**** ****of                Operations** |   |                                                    |                             |   |   |   |   |
| Cost                of sales, buying and store                occupancy costs       |   | $                                                       | 94,856                           |   | $ | 66 |   | $ | 94,922 |   |
| Loss                before income taxes                                             |   |                                                    | (10,310                          | ) |   | (66 | ) |   | (10,376 | ) |
| Benefit                for income taxes                                             |   |                                                    | (3,024                           | ) |   | (24 | ) |   | (3,048 | ) |
| Net                loss                                                             |   |                                                    | (7,286                           | ) |   | (42 | ) |   | (7,328 | ) |
| Basic                loss per share                                                 |   | $                                                       | (0.20                            | ) |   | -- |   | $ | (0.20 | ) |
| Diluted                loss per share                                               |   | $                                                       | (0.20                            | ) |   | -- |   | $ | (0.20 | ) |
|                                                                                |   |                                                    |                             |   |   |   |   |   |   |   |
|                                                                                |   | Nine                Months Ended October 30, 2004  |
|                                                                                |   |                                                    | As                Reported  |   |   | Impact                of Restatement |   |   | As                Restated |   |
| **Consolidated                Statement**** ****of                Operations** |   |                                                    |                             |   |   |   |   |   |   |   |
| Cost                of sales, buying and store                occupancy costs       |   | $                                                       | 283,556                          |   | $ | 68 |   | $ | 283,624 |   |
| Loss                before income taxes                                             |   |                                                    | (29,784                          | ) |   | (68 | ) |   | (29,852 | ) |
| Benefit                for income taxes                                             |   |                                                    | (10,424                          | ) |   | (25 | ) |   | (10,449 | ) |
| Net                loss                                                             |   |                                                    | (19,360                          | ) |   | (43 | ) |   | (19,403 | ) |
| Basic                loss per share                                                 |   | $                                                       | (0.54                            | ) |   | -- |   | $ | (0.54 | ) |
| Diluted                loss per share                                               |   | $                                                       | (0.54                            | ) |   | -- |   | $ | (0.54 | ) |
|                                                                                |   |                                                    |                             |   |   |   |   |   |   |   |
|                                                                                |   |                                                    |                             |   |   |   |   |   |   |   |
| **Consolidated                Statement**** ****of                Cash Flows** |   |                                                    |                             |   |   |   |   |   |   |   |
| Net                cash used inoperating                activities                  |   | $                                                       | (44,052                          | ) | $ | 8,540 |   | $ | (35,512 | ) |
| Net                cash used in investing                activities                 |   |                                                    | (18,266                          | ) |   | (8,540 | ) |   | (26,806 | ) |

----

*Accounting      for Stock-Based Compensation*

----

|                                                                                                 |   | Three                Months Ended |   | Nine                Months Ended |   |
|------------------------------------------------------------------------------------------------------|--------|-----------------------------------|--------|----------------------------------|--------|
|                                                                                                 |   | Oct.                29,2005       |   | Oct.                30,2004      |   | Oct.                29,2005 |   | Oct.                30,2004 |   |
|                                                                                                 |   |                              |   | (restated)                       |   |   |   | (restated) |   |
| Net                loss, as reported                                                            |   | $                                 | (4,129 | )                                | $      | (7,328 | ) | $ | (21,500 | ) | $ | (19,403 | ) |
| Stock-based                compensation expense determined                under SFAS 123, net of tax |   |                              | (299   | )                                |   | (628 | ) |   | (976 | ) |   | (1,512 | ) |
| Net                loss, pro forma                                                                   |   | $                                 | (4,428 | )                                | $      | (7,956 | ) | $ | (22,476 | ) | $ | (20,915 | ) |
|                                                                                                 |   |                              |   |                             |   |   |   |   |   |   |   |   |   |
| Basic                and diluted loss per                share, as reported                          |   | $                                 | (0.11  | )                                | $      | (0.20 | ) | $ | (0.59 | ) | $ | (0.54 | ) |
| Basic                and diluted loss per                share, pro forma                            |   | $                                 | (0.12  | )                                | $      | (0.22 | ) | $ | (0.62 | ) | $ | (0.59 | ) |

|                                                   |   | Three                Months Ended |   | Nine                Months Ended |   |
|--------------------------------------------------------|--------|-----------------------------------|--------|----------------------------------|--------|
|                                                   |   | Oct.                29,2005       |   | Oct.                30,2004      |   | Oct.                29,2005 |   | Oct.                30,2004 |   |
|                                                   |   |                              |   | (restated)                       |   |   |   | (restated) |   |
| Net                loss                                |   | $                                 | (4,129 | )                                | $      | (7,328 | ) | $ | (21,500 | ) | $ | (19,403 | ) |
| Foreign                currency translationadjustments |   |                              | 634    |                             |   | 1,040 |   |   | 732 |   |   | 1,060 |   |
| Comprehensive                loss                      |   | $                                 | (3,495 | )                                | $      | (6,288 | ) | $ | (20,768 | ) | $ | (18,343 | ) |

----

*Accounting      for Income Taxes*

|                                                                                                         |   | Three                Months Ended |   | Nine                Months Ended |   |
|--------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|--------|----------------------------------|--------|
|                                                                                                         |   | Oct.                29,           |   | Oct.                30,          |   | Oct.                29, |   | Oct.                30, |   |
|                                                                                                         |   | 2005                              |   | 2004                             |   | 2005 |   | 2004 |   |
|                                                                                                         |   |                              |   | (restated)                       |   |   |   | (restated) |   |
| Numerator:                                                                                                   |   |                              |   |                             |   |   |   |   |   |
| Net                loss………………………………. |   | $                                 | (4,129 | )                                | $      | (7,328 | ) | $ | (21,500 | ) | $ | (19,403 | ) |
| Denominator                for basic and dilutedloss                per share:                               |   |                              |   |                             |   |   |   |   |   |   |   |   |   |
| Average                common shares outstanding...                                                          |   |                              | 36,349 |                             |   | 35,834 |   |   | 36,169 |   |   | 35,644 |   |
|  Basic                and diluted loss per share………..                                 |   | $                                 | (0.11  | )                                | $      | (0.20 | ) | $ | (0.59 | ) | $ | (0.54 | ) |

----

|                                                                                               | Oct.                29,2005 |   | Oct.                30,2004 |
|----------------------------------------------------------------------------------------------------|-----------------------------|--------|-----------------------------|
| Stock                options………………………… | 3,289                       |   | 3,424                       |
| Deferred                director compensation……..                                      | 73                          |   | 43                          |
| Total…………………………                        | 3,362                       |   | 3,467                       |

*Share-Based      Payment.*

----

*Accounting      Changes and Error Corrections. *

*Accounting      for Rental Costs Incurred during Construction Period.*

----

Item      2.

----

Rest

----

Exec

|   | · | Return                to positive same store sales - This quarter saw positive same store                sales                of 2.7% reversing the trend of same store sales declines that we                had been                experiencing in the recent past. The third quarter began strong with                an                11% same store sales increase during the month of August. We believe                that                the increase was a response to the new product introductions during                the                late summer and an improved in-store presentation of the merchandise                as                well as the change in the timing of a major promotional event. The                momentum was interrupted by the hurricane season and we struggled                to                regain the positive trends established. By the end of the quarter,                new                marketing efforts began to take hold and we began to realize increases                in                same store sales. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Develop                sustainable growth in margin rate - We believe that one of the keys                to                establishing an improved margin rate relates to upgrading the quality                of                our merchandise and increasing the average unit retail price realized.                We                believe an upgraded assortment that differentiates Bombay from the                mass                merchants and secures its place in the mid-priced traditional, timeless                and classic home furnishings niche is critical to repositioning the                Company. During the fall, we introduced a product assortment that                resulted                in a 14% increase in the average transaction size and more than a                20%                increase in the average unit retail price. Softness in traffic resulted                in                an 8% decline in the total number of transactions and caused us to                be more                promotional than we had intended as we increased promotional activity                to                regain momentum. As a result, product margins declined slightly as                a                percentage of revenue. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Ensure                future profitability - We have developed a two-pronged strategy for                enhancing profitability. Our first strategy is to keep our corporate                and                store four-wall selling, general and administrative expenses controlled                at                levels in line with sales levels. Our focus has been on efficiency                and                “right-sizing” the organization for our new real estate and operating                strategies. For the third quarter, our corporate office general and                administrative expenses were below last year. Leveraging our store                four-wall costs has been a challenge because the average sales per                square                foot has declined as we rolled out more BombayKIDS stores and increased                the store size as we migrated to off-mall locations with our core                stores. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Continue                to invest for the future - We have spent much of the past two years                investing in our infrastructure in order to address the structural                issues                of our business. To reduce store occupancy costs, we have been migrating                mall-based stores to off-mall locations as leases expire and suitable                locations become available. During the third quarter of Fiscal 2005,                we                opened 6 core Bombay stores in off-mall locations and 2 BombayKIDS                stores                while closing 8 mall-based stores, bringing the total off-mall count                to                155 core Bombay stores or 40% of the total Bombay locations. During                the                first nine months of the year, four-wall operating margins for the                off-mall core stores were over 600 basis points higher than the mall-based                stores primarily as a result of the lower occupancy costs. These                off-mall                stores contributed over two and one half times the contribution to                margin                and overhead that the 230 mall based stores produced. While the magnitude                of the difference decreases as we enter the holiday season when sales                volumes are higher, we believe that the reduction in fixed costs                is key to                reducing losses in the first three quarters of the year and improving                overall profitability. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Res

|                                                                            |   | Three                Months Ended |
|---------------------------------------------------------------------------------|--------|-----------------------------------|
|                                                                            |   | Oct.                29,           |   | Oct.                30, |
|                                                                            |   | 2005                              |   | 2004 |
| Sales                mix:                                                       |   |                              |   |   |
| Large                furniture……………..             |   | 35%                               |   | 31% |
| Occasional                furniture……….                       |   | 17                                |   | 21 |
| Wall                décor………………… |   | 15                                |   | 13 |
| Accessories………………..                         |   |                  33          |   |                  35 |
|                                                                            |   | 100%                              |   | 100% |

----

----

|                                                                            |   | Nine                Months Ended |
|---------------------------------------------------------------------------------|--------|----------------------------------|
|                                                                            |   | Oct.                29,          |   | Oct.                30, |
|                                                                            |   | 2005                             |   | 2004 |
| Sales                mix:                                                       |   |                             |   |   |
| Large                furniture……………..             |   | 32%                              |   | 32% |
| Occasional                furniture……….                       |   | 18                               |   | 20 |
| Wall                décor………………… |   | 16                               |   | 13 |
| Accessories………………..                         |   |                  34         |   |                  35 |
|                                                                            |   | 100%                             |   | 100% |

----

Liqui

----

Critical

----

New

*Share-Based      Payment.*

*Accounting      Changes and Error Corrections. *

*Accounting      for Rental Costs Incurred during Construction Period.*

----

Item      3

Item      4

----

Item 5.

Item      6

| Exhibit                  No. |   | Description |
|------------------------------|--------|-------------|

|                  |   |                                                              |
|-----------------------|--------|-------------------------------------------------------------------|
| 10                (a) |   | Employment                Agreement with Executive Officer        |
|                  |   |                                                              |
| 10                (b) |   | Form                of Restricted Stock Award Agreement           |
|                  |   | under                the 1996 Long Term Incentive Stock Plan      |
|                  |   |                                                              |
| 31(a)                 |   | Certification                by Chief Executive Officer Pursuant  |
|                  |   | to                Rule 13a-15 and Rule 15d-15 of the Securities   |
|                  |   | Exchange                Act of 1934, as amended                   |
|                  |   |                                                              |
| 31(b)                 |   | Certification                by Chief Financial Officer Pursuant  |
|                  |   | to                Rule 13a-15 and Rule 15d-15 of the Securities   |
|                  |   | Exchange                Act of 1934, as amended                   |
|                  |   |                                                              |
| 32                    |   | Certifications                of Registrant Pursuant to 18 U.S.C. |
|                  |   | Section                1350, as adopted pursuant to Section 906   |
|                  |   | of                the Sarbanes-Oxley Act of 2002                  |
|                  |   |                                                              |
|                  |   |                                                              |

----

THE

|                                  |   | THE                BOMBAY COMPANY, INC.        |
|---------------------------------------|--------|------------------------------------------------|
|                                  |   | (Registrant)                                   |
|                                  |   |                                           |
|                                  |   |                                           |
|                                  |   |                                           |
|                                  |   | /S/                JAMES D. CARREKER           |
| Date:                December 8, 2005 |   | James                D. Carreker               |
|                                  |   | Chairman                of the Board and       |
|                                  |   | Chief                Executive Officer         |
|                                  |   |                                           |
|                                  |   |                                           |
|                                  |   |                                           |
|                                  |   |                                           |
|                                  |   | /S/                ELAINE D. CROWLEY           |
| Date:                December 8, 2005 |   | Elaine                D. Crowley               |
|                                  |   | Senior                Vice President, Chief    |
|                                  |   | Financial                Officer and Treasurer |
|                                  |   |                                           |
|                                  |   |                                           |