EXHIBIT 10.3






                                     NOTE

$18,000,000 USD                                            September 29, 2004


       FOR  VALUE  RECEIVED,  the  undersigned, The Bombay Furniture Company of
Canada Inc. a corporation continued and existing under the laws of the Province
of  Ontario  ("Bombay  Canada"),  hereby  promises  to  pay  to  the  order  of
TRANSCANADA ("Canadian Lender") at  the  Canadian Lender's office at Suite 400,
55 Standish Court Mississauga, Ontario L5R 4J4;

       (a)   Prior to or on the Maturity Date  the principal amount of EIGHTEEN
MILLION UNITED STATES DOLLARS ($18,000,000 USD)  or,  if  less,  the  aggregate
unpaid  principal amount of Canadian Advances (as defined in the Loan Agreement
as hereinafter  defined)  made by the Canadian Lender to Bombay Canada pursuant
to that certain Loan and Security Agreement, dated as of September 29, 2004 (as
amended, amended and restated  or otherwise modified and in effect from time to
time, the "Loan Agreement"), among  Bombay  Canada,  the  other  Borrowers  (as
defined  in  the  Loan  Agreement),  Canadian  Lender  and  the other financial
institutions from time to time party thereto (collectively, the  "Lenders") and
Wells Fargo Retail Finance, LLC, as agent for the Lenders (the "Agent");

       (b)   The principal outstanding hereunder from time to time at the times
provided in the Loan Agreement; and

       (c)   Interest  on  the  principal  balance  hereof  from  time to  time
outstanding  from the date hereof through and including the Maturity  Date  (as
defined in the  Loan  Agreement)  at  the times and at the rate provided in the
Loan Agreement.

       All capitalized terms used in this Note and not otherwise defined herein
shall  have the same meanings herein as  in  the  Loan  Agreement.   This  Note
evidences  borrowings  under and has been issued by Bombay Canada in accordance
with the terms of the Loan  Agreement.   The  Canadian  Lender  and  any holder
hereof  is  entitled  to the benefits of the Loan Agreement and the other  Loan
Documents, and may enforce  the  agreements of Bombay Canada contained therein,
and any holder hereof may exercise the respective remedies provided for thereby
or  otherwise  available  in  respect  thereof,  all  in  accordance  with  the
respective terms thereof.

       Bombay Canada irrevocably  authorizes  the  Canadian  Lender  to make or
cause  to  be  made,  at  or  about the time of each Advance or at the time  of
receipt of any payment of principal  of  this  Note, an appropriate notation on
the grid attached to this Note, or the continuation  of such grid, or any other
similar  record,  including computer records, reflecting  the  making  of  such
Canadian Advances or  (as  the  case  may be) the receipt of such payment.  The
outstanding amount of the Canadian Advances  set  forth on the grid attached to
this  Note,  or  the continuation of such grid, or any  other  similar  record,
including computer  records,  maintained by the Canadian Lender with respect to
any Canadian Advances shall be  prima  facie  evidence  of the principal amount
thereof owing and unpaid to the Canadian Lender, but the  failure to record, or
any  error in so recording, any such amount on any such grid,  continuation  or
other  record  shall  not  limit  or  otherwise affect the obligation of Bombay
Canada hereunder or under the Loan Agreement  to  make payments of principal of
and interest on this Note when due.
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<PAGE>
       Bombay Canada has the right in certain circumstances  and the obligation
under certain other circumstances to prepay the whole or part  of the principal
of this Note on the terms and conditions specified in the Loan Agreement.

       If  any  one  or more of the Events of Default shall occur,  the  entire
unpaid principal amount  of  this  Note  and all of the unpaid interest accrued
thereon may become or be declared due and  payable  in  the manner and with the
effect provided in the Loan Agreement.

       No delay or omission on the part of the Canadian Lender  or  any  holder
hereof  in  exercising  any  right  hereunder shall operate as a waiver of such
right or of any other rights of the Canadian  Lender  or such holder, nor shall
any delay, omission or waiver on any one occasion be deemed  a bar or waiver of
the same or any other right on any further occasion.

       Bombay  Canada  and  every endorser and guarantor of this  Note  or  the
obligation  represented  hereby  (except  for  any  notice  expressly  required
pursuant to the Loan Agreement)  waive presentment, demand, notice, protest and
all  other demands and notices in connection  with  the  delivery,  acceptance,
performance,  default or enforcement of this Note, and assents to any extension
or postponement  of  the  time  of  payment  or  any  other  indulgence, to any
substitution, exchange or release of collateral and to the addition  or release
of any other party or person primarily or secondarily liable.

       THIS NOTE AND THE OBLIGATIONS OF BOMBAY CANADA HEREUNDER SHALL  FOR  ALL
PURPOSES  BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE
OF NEW YORK  (EXCLUDING THE LAWS APPLICABLE TO CONFLICTS OR CHOICE OF LAW OTHER
THAN GENERAL OBLIGATIONS  LAW  {section}5-1401  AND  {section}5-1402).   BOMBAY
CANADA AGREES THAT ANY SUIT FOR THE ENFORCEMENT OF THIS NOTE MAY BE BROUGHT  IN
ANY  FEDERAL COURT IN THE STATE OF NEW YORK AND THE CONSENT TO THE NONEXCLUSIVE
JURISDICTION  OF  SUCH  COURT AND THE SERVICE OF PROCESS IN ANY SUCH SUIT BEING
MADE UPON THE BORROWER BY  MAIL  AT THE ADDRESS SPECIFIED IN {section}12 OF THE
LOAN AGREEMENT.  BOMBAY CANADA HEREBY WAIVES ANY OBJECTION THAT THEY MAY NOW OR
HEREAFTER HAVE TO THE VENUE OF ANY  SUCH  SUIT  OR  ANY SUCH COURT OR THAT SUCH
SUIT IS BROUGHT IN AN INCONVENIENT COURT.



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       IN WITNESS WHEREOF, the undersigned has caused this Note to be signed in
its corporate name by its duly authorized officer as  of the day and year first
above written.


                                        THE BOMBAY FURNITURE  COMPANY OF CANADA
                                        INC.



                                        By:    /S/ ELAINE D. CROWLEY
                                        Name:  Elaine D. Crowley
                                        Title: Vice President







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<TABLE>
<CAPTION>

<S>     <C>          <C>                     <C>                     <C>
Date    Amount of    Amount of Principal     Balance of Principal    Notation Made
         Advance       Paid or Prepaid             Unpaid                By:

                                    4
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</TABLE>