Z Gallerie Emerges from Bankruptcy
By Jay McIntosh, Furniture Today Staff -- Gifts and Dec, 10/28/2009 8:33:00 AM
Gardena, CA — Home furnishings retailer Z Gallerie said Tuesday it has emerged from Chapter 11 bankruptcy with a $22 million financing package from Wells Fargo Business Credit.
The 54-store company had filed for Chapter 11 on April 10. Earlier in the year, it had closed 21 underperforming stores.
"We are pleased to have obtained support from our major constituencies and to have completed the process so quickly," said Mike Zeiden, CFO and co-founder of the Top 100 company.
Zeiden said he and family members Carole Malfatti and Joe Zeiden remain the owners. They had founded Z Gallerie as a poster shop in Sherman Oaks, CA, in 1979.
Mike Zeiden thanked the company's employees, business partners and customers for their support during the reorganization.
"Our vendors have been extremely supportive," said Malfatti, the company's vice president.
The retailer said it recently launched a Facebook fan page, and has retained all its principal merchandising and customer programs, including a private-label credit card.
The company said it is being advised by its turnaround managers, Thomas S. Paccioretti and Benjamin F. Cary of Broadway Advisors, and its bankruptcy counsel, Jeffrey W. Dulberg and Scotta E. McFarland of Pachulski Stang Ziehl & Jones.
Z Gallerie was ranked at No. 39 on Gifts & Decorative Accessories' sister publication Furniture/Today's Top 100 this year with estimated 2008 furniture, bedding and accessories sales of $154 million, and total revenues of $189.9 million, at 78 stores.
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