Z Gallerie closes 21 units
By Clint Engel -- Furniture Today, March 23, 2009
GARDENA, Calif. — Home furnishings retailer Z Gallerie has closed 21 of its 78 stores in various markets, culling out the poorest performers.
Chief Financial Officer Mike Zeiden said the deteriorating economic climate took a toll on the Top 100 company, leading it to step back and focus on high-performing stores.
Z Gallerie decided to close those stores that were no longer doing well, he said, even though they had all been healthy contributors when they were opened in better times.
The Gardena, Calif.-based company exited Ohio, closing all four of its stores in the state as well as single stores in New York, Michigan, Minnesota and Virginia, he said. It also closed two stores in Colorado, its Phoenix-area stores and its Estero, Fla., store on the Gulf Coast, among others.
The closing sales began in mid-February and were completed in mid-March.
“Our hope is that it's going to make us stronger,” Zeiden said. “We'll be able to focus on the stores we have, narrow the inventory we have to carry and better focus on our customers. We're more or less going back to our core competency — the way we were back in 2002 and 2003.”
Last year, the lifestyle specialty retailer had revenue of about $190 million, down about 12% from the year before, he said, adding that the company struggled through the fourth quarter and early this year. But more recently, Z Gallerie has seen sales increases on its daily business reports — despite having fewer overall stores now, he said.
Z Gallerie closes 21 stores
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