Reduced to merely 21 stores now, Z Gallerie once had over 60 locations across the country. So, is Z Gallerie going out of business? You might wonder.
The home furnishing retailer has fallen repeatedly over the years and has seen really hard times. And the news of Z Gallerie filing for bankruptcy for the third time is sad but not surprising at all.
So how did this happen? Why Z Gallerie, once a popular home decor company, went downhill? And is it finally going out of business? Let’s find out!
About Z Gallerie
Z Gallerie is a chain of home furnishing, decor, and art retail stores that was founded by siblings Mike Zeiden, Joe Zeiden, and Carole Malfatti in the year 1979 in Sherman Oaks, California.
Back then, Z Gallerie was just a small poster shop where the founder siblings framed posters at night and sold them during the day in their dad’s garage.
As their business grew, the siblings moved their production company into a warehouse, and soon enough, they had a number of locations across Los Angeles, California.
Over the years, Z Gallerie has seen a lot of hiccups. They filed their first bankruptcy in 2009 but emerged from it after getting a $22 million financing package from Wells Fargo Business Credit.
In 2014, a private equity firm, Brentwood Associates, acquired Z Gallerie, but shortly in 2019, it again announced bankruptcy filing.
DirectBuy acquired Z Gallerie for $20.3 million in the same year through a bankruptcy auction. The acquisition included 32 stores and the retailer’s headquarters. Additionally, it was announced that 17 stores would be shut down.
And now, the company’s situation has worsened so much that they might be going out of business. Let’s discuss this closely.
Is Z Gallerie Going Out Of Business 2023?
Z Gallerie has announced that it will be closing all of its brick-and-mortar stores nationwide. Z Gallerie had 21 stores in 9 states, including five in Califronia. However, it will still be operating online. So in case you loved Z Gallerie, then do not be saddened! You can still buy their unique and unexpected designs online.
“Thank you for shopping with our store teams over the years, you have inspired us,” the company posted on their social media on Wednesday.
“Even though our retail stores are closing, our signature Z Gallerie style is available to you, our valued customers, 24/7 via our online channel so you can continue to get lost in the details and turn your home into a work of art.”
Why Is Z Gallerie Going Out Of Business?
The first time Z Galleried filed for bankruptcy in 2014 was because of the Great Recession.
But now, the company is saddled with a debt of $50 million and $100 million, caused by a number of factors and is the reason why it is closing down.
In the court’s filing, Fetterman wrote, “The company is suffering under severe liquidity constraints brought on by a confluence of underperforming retail stores, adverse macroeconomic trends, and industry specific headwinds, including the lasting impact of COVID-19 on the retail industry.”
“Needless to say, macroeconomic trends have significantly impacted the Debtor’s business in the second half of 2023 and has had negative consequences for many in the Debtor’s line of business,” he added.
Indeed, Z Gallerie is not the only company that met this catastrophe. For similar reasons, a lot of different companies, including L.L Bean, and Joann Fabric, among others, are taking the bankruptcy route.
Z Gallerie Closing Sale
DirectBuy Home Improvement, Inc. has initiated the bankruptcy proceeding of Z Gallerie, and as a result, the company is making a nationwide closing sale in the retailer’s locations.
You can find upto 40% off on all products in the 21 brick-and-mortar locations that are all set to close down. The discounted items will include:
- Furniture, decorative chairs and tables, sofas, dining sets, dressers, nightstands, consoles, beds, desks, bookcases, and cabinets.
- Lighting fixtures, chandeliers, lamps, and sconces.
- Home décor, wall mounted art, mirrors, curtains, frames, rugs, and window panels.
- Bedding, bath towels, decorative pillows, rugs, and much more.
Customers can enjoy the sales by visiting their nearest locations and grabbing home decor items for slashed prices. Also, purchases made during the sale would be final, and customers will not be able to return the items they buy.
If you were a frequent buyer at Z Gallerie, then you must have been worried about thinking Is Z Gallerie Going Out Of Business?
As revealed in the article above, the company is closing down all of its locations. However, you do not have to be sad, as you will still be able to shop from Z Gallerie online.
We hope you found the answers you were looking for in this article.
Who owns Z Gallerie?
DirectBuy Home Improvement Inc. owns Z Gallerie currently.
Where is Z Gallerie headquartered?
Z Gallerie is headquartered in Gardena, California, United States.
What style did Z Gallerie offered?
Z Gallerie offered furniture, and home decor items that were modern, relaxed and glamorous.