From Home Furnishing Business
Z Gallerie Files for Chapter 11 Bankruptcy
Home décor retailer Z Gallerie has announced it has filed voluntary petitions to restructure under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware.
In conjunction with the Chapter 11 filing and subject to court approval, Z Gallerie expects to have access to a $28 million debtor-in-possession (DIP) financing facility from its existing secured lender, KeyBank National Association.
Subject to court approval, the DIP financing, which provides up to $8 million in incremental liquidity, combined with the company’s cash from operations, is expected to provide sufficient liquidity during the Chapter 11 process to maintain normal operations.
“We are pleased to have reached this agreement with KeyBank that will enable Z Gallerie to continue to execute its strategy and position itself for long-term success,” said Mark Weinsten, CEO of Z Gallerie. “Z Gallerie has made significant progress on improving all facets of our operations, enhancing our customer service and scaling our E-commerce presence. Upon emergence, we will have a stronger balance sheet and the financial flexibility needed to compete in today’s dynamic retail environment now and for the long term.”
“Importantly, we are a strong company offering a premium lifestyle brand in the fashion home space. We look forward to emerging from this process as quickly as possible and greatly appreciate the ongoing support of our employees, customers, suppliers and landlords. Their continued backing has been, and will continue to be, an integral factor in our success,” added Weinsten.
All Z Gallerie stores nationwide remain open and continue to operate on normal schedules. Customers can also continue to shop online just as they have in the past. As part of the restructuring, the company filed a motion with the court seeking approval to proceed with closing 17 stores. The company expects the Chapter 11 process to last approximately four months.