After 3rd bankruptcy, Z Gallerie begins liquidation sales

Kimberly Redmond//October 26, 2023//

Known as a specialty seller of upscale furnishings and décor, Z Gallerie began in 1979 as a family-owned business until nine years ago when it was acquired by private equity owners. - Z GALLERIE

Kimberly Redmond//October 26, 2023//

Listen to this article

Liquidation is underway at nearly two dozen Z Gallerie stores – including its one New Jersey location in Paramus – after the California-based home furnishings and décor chain went bankrupt for a third time.

Managed by B. Riley Retail Solutions LLC, a subsidiary of B. Riley Financial Inc., the markdowns apply to all inventory, with starting discounts of up to 40% on items including furniture, lighting fixtures, bedding, rugs and bath towels.

In an Oct. 25 press release, Tim Shilling, executive vice president of B. Riley Retail Solutions, said, “This is a unique opportunity to buy high-end, quality home décor at deeply discounted prices. We encourage shoppers to visit their nearest store before merchandise sells out. This sale will be available for a limited time only.”

According to B. Riley, all purchases made during liquidation are final. Returns on items purchased after Oct. 24 will not be accepted; however, customers may return goods bought prior to that date if they have a receipt. Additionally, Z Gallerie gift cards may be used until Nov. 15.

This marks the third time Z Gallerie has sought bankruptcy protection, as the retailer also filed for Chapter 11 in 2009 and 2019.

Known as a specialty seller of upscale furnishings and décor, Z Gallerie began in 1979 as a family-owned business. Nine years ago it was acquired by private equity owners.

In its latest petition filed Oct. 16 in U.S. Bankruptcy Court for the District of New Jersey, Z Gallerie, which is owned by CSC Generation Holdings Inc. and does business as part of DirectBuy Home Improvement Inc., cited “severe liquidity constraints” stemming from the pandemic-related escalation of supply chain and import costs, according to reports.

The company also said spiking interest and mortgage rates have led to a slowdown of the housing market, which is causing its stores and e-commerce platform to underperform, and that it owes between $50 million and $100 million to creditors.

While the retailer is still searching for a buyer, it warned that it would close its 21 stores and one warehouse by the end of the year in case none materializes. In the interim, it has received a $1.1 million line of credit to maintain operations during bankruptcy proceedings.