Daily News
From Home Furnishing Business
Retailer Z Gallerie Files for Bankruptcy for Third Time
October 18,
2023 by HFBusiness Staff in Business Strategy, Industry 
According to an article in Bloomberg, Home Décor and Furniture Retailer Z Gallerie Filed for Bankruptcy for the third time on Oct. 16. The case is DirectBuy Home Improvement Inc., 23-19159, US Bankruptcy Court for the District of New Jersey (Newark).
The first time they filed for bankruptcy was in 2009, and they then filed again in 2019 when the sold itself to its current owner, DirectBuy Home Improvement, Inc.
Z Gallerie blames the housing slowdown and industry headwinds for their closing. In the filing in a Delaware court, they said that high mortgage rates contributed to a pullback in the home sales which slowed demand for their product, which include upscale furniture pieces.
Higher import costs and negative cash flow also contributed. Assets and liabilities of as much as $100 million each were included in its bankruptcy petition.
They are searching for a buyer and are prepared to liquidate if one cannot be found. The initial plan is to shut down its warehouse and all of its 21 locations by the end of the year. It has also been indicated the firm is prepared to trim its 250-person workforce as a means to save cash.