Tuesday, April 14, 2009

Z Gallerie Files Chapter 11 Bankruptcy

Sadly, another furniture and accessories store has had to resort to chapter 11 reorganization. This time Z Gallerie, with 57 stores, one at Bridgeport in Oregon, filed chapter 11 saying "it was unable to pay its debts and lease obligations amid a three-year sales slump. About $12 million in debt is owed to 21 landlords." The company 78 stores but closed 21 of the worst performers. They also have focused on their relationships with vendors with lease payments taking a back seat.
The filing and restructuring "will allow us to eliminate certain lease liabilities from discontinued stores, and to continue to operate and serve our customers well," he said.
Bev & Mike
Landfair Furniture + Design Gallery
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