Home décor retailer Z Gallerie filed for Chapter 11 bankruptcy protection and plans to close 17 stores as part of its restructuring.
The struggling Gardena-based retailer has less than $2 million on hand and didn’t have enough to pay rent in March or pick up imported products at the port, according to court filings.
As part of its plan, the company is asking the court to approve a $28 million credit line from KeyBank National Association.
Without the financing, chief executive Mark Weinsten said in a court declaration Z Gallerie would be forced to liquidate.
“We look forward to emerging from this process as quickly as possible and greatly appreciate the ongoing support of our employees, customers, suppliers and landlords,” Weinsten said in a press release.
Z Gallerie was founded in 1979 by siblings Joe Zeiden, Carole Malfatti, and Mike Zeiden. The retailer sells furniture, art and accessories online and across 76 locations throughout the United States. The retailer is seeking bankruptcy court approval to shutter 17 stores, making it the latest casualty to roil the retail industry. Retailers have had 2,264 store closures this year, according to a report by Coresight Research.
Manufacturing, retail and trade reporter Rachel Uranga can be reached at email@example.com or (323) 549-5225 ext. 251. Follow her on Twitter @racheluranga
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