Z Gallerie is known for its wall art assortment-far larger than other players like Pottery Barn or Crate & Barrel. The bankruptcy proceedings are expected to take four months and the company has already secured debtor-in-possession (DIP) financing of up to $28 million from Keybank to get through the process. According to Bloomberg, Z Gallerie reported $138 million in outstanding debt-funded obligations and less than $2 million in cash. The company announced that it will close 17 of its 76-store inventory. Retailers owned by outside financial firms have not fared well over the past few years, with many-from Toys “R” Us to Payless Shoe Store-succumbing to overbearing debt. Although the founders retain shares in Z Gallerie, it seems they were eventually succeeded by outside management: The 2009 filing was announced by Mike Zeiden yesterday’s statement came from interim CEO Mark Weinstein. When the chain emerged from Chapter 11 later that year, it had shed 25 of its stores, but the founding family was still running the show-and still adhering to the same merchandising strategy that emphasized an odd mix of glam, retro and American regional design.īut five years later, things changed big-time when the family sold a majority stake to Brentwood Associates, a Los Angeles–based private equity firm whose other holdings include apparel brand Marshall Rousso, and clothing and accessories catalog brands Soft Surroundings, Beyond Proper by Boston Proper, and J. In 2009, Z Gallerie became another casualty of the Great Recession’s destructive path across virtually all of American retail. (“From huge antique wall clocks and oversized mooshy pillows to retro black and white prints and bronze fish they have almost everything you could want or fit in your tiny abode,” wrote one Yelp reviewer in 2008.) Thirty years later, the company had opened 57 stores from coast to coast, including a location on Broadway in lower Manhattan. A few years later, they opened a separate home decor store before combining the businesses under the Z Gallerie banner. Sibling trio Carole Malfatti and Joe and Mike Zeiden founded the company in 1979, opening a poster shop in Sherman Oaks, California, and framing posters in their parents’ garage at night. So where did the company go wrong? Was it the brand’s out-of-touch merchandising, or is Z Gallerie just another private equity victim? For those keeping score, the correct answer is probably a little bit of both. And although the company says it will remain in business while closing some of its stores, this Chapter 11 go-round is likely to be very different. I expect so little of this company.Home furnishings specialty chain Z Gallerie filed for bankruptcy yesterday-its second time to do so since 2009. So I have sent pictures to Z Gall of what we actually did receive, who knows when we will get our missing pieces and what shape they will be in. We have had issues with other furniture companies and their reps have been apologetic and they have given discounts. He was not interested in trying to resolve the situation. I'm not sure what type of customer training they receive. I told them we should get a discount for the long delay in receiving our furniture (this furniture was ordered in May) and then once the furniture actually did arrive, it was incomplete, his response was-Z gallerie does not give discounts and also they don't give them "for every little thing." So dismissive and combative. I think they call it the escalation department because this department escalates conflict and the people that work there are very rude. I called customer service and talked to the "escalation department". The delivery company said they would be back the next day with the missing pieces-of course that DID NOT HAPPEN. The other bed was missing the foot board and a side rail. To our dismay, 2 out of the 3 beds, CUSTOM beds, are MISSING pieces.
Z gallerie out of business update#
Update to Delivery-our furniture was finally delivered. Horrible Experience continued with Delivery
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