March 14, 2019
Los Angeles-based Z Gallerie, LLC filed voluntary petitions to restructure under Chapter 11 of the U.S. Bankruptcy Code. The home décor retailer also filed a motion seeking approval to proceed with closing 17 stores.
Z Gallerie expects to have access to a $28 million debtor-in-possession (DIP) financing facility from its existing secured lender, KeyBank National Association. The DIP financing, which provides up to $8 million in incremental liquidity, combined with the company’s cash from operations, is expected to provide sufficient liquidity during the Chapter 11 process to maintain normal operations
Z Gallerie’s Mark Weinsten says, “Z Gallerie has made significant progress on improving all facets of our operations, enhancing our customer service and scaling our E-commerce presence. Upon emergence, we will have a stronger balance sheet and the financial flexibility needed to compete in today’s dynamic retail environment now and for the long term.”
The company expects the Chapter 11 process to span roughly four months.
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