Z Gallerie in Chapter 11
Staff Staff -- Furniture Today, April 13, 2009
Gardena, Calif. – Home furnishings retailer Z Gallerie filed for Chapter 11 bankruptcy protection at the U.S Bankruptcy Court for the Central District of California in Los Angeles.
The company said in statement that it was reorganizing to remove the liability from 22 leases associated with store closings and an Atlanta distribution center closing the company had announced in February.
“In light of current conditions, our company has had to make some difficult decisions,” said Mike Zeiden, cfo and co-founder.
The 30-year-old company plans to pay vendors who do business with it going forward on an administrative priority basis for all goods and services received on or after the April 10 filing date. Z Gallerie is being advised by turnaround managers Broadway Advisors LLC and bankruptcy counsel Pachulski Stang Ziehl & Jones.
The privately owned company employs about 900 people.
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