Z Gallerie to Implement Financial Restructuring Through Voluntary Chapter 11 Filing
LOS ANGELES--(BUSINESS WIRE)--Mar 11, 2019--Z Gallerie, LLC, (“Z Gallerie” or the “Company”), a leading retailer of home décor products, announced today that it has filed voluntary petitions to restructure under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware (the “Court”). In conjunction with the Chapter 11 filing and subject to Court approval, Z Gallerie expects to have access to a $28 million debtor-in-possession (DIP) financing facility from its existing secured lender, KeyBank National Association. Subject to Court approval, 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.
“We are pleased to have reached this agreement with KeyBank that will enable Z Gallerie to continue to execute its strategy and position itself for long-term success,” said Mark Weinsten, Z Gallerie’s Chief Executive Officer. “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.”
“Importantly, we are a strong company offering a premium lifestyle brand in the fashion home space. 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. Their continued backing has been, and will continue to be, an integral factor in our success.”
All Z Gallerie stores nationwide remain open and continue to operate on normal schedules. Customers can also continue to shop online just as they have in the past. As part of the restructuring, the Company filed a motion with the Court seeking approval to proceed with closing 17 stores. The Company expects the Chapter 11 process to last approximately 4 months.
Kirkland & Ellis LLP and Klehr Harrison Harvey Branzburg LLP are providing legal counsel to Z Gallerie. Berkeley Research Group, LLC is serving as restructuring advisor and Lazard Middle Market LLC is serving as Investment Banker. Stretto is serving as Notice and Claims Agent.
Additional information regarding Z Gallerie’s Chapter 11 filing is available at http://cases.stretto.com/zgallerie.
About Z Gallerie
Headquartered in Los Angeles, Z Gallerie is the style authority for the fashion forward home. The brand celebrates the glamorous, the modern, and the relaxed lifestyle with cutting edge designs and sophisticated, accessible furnishings. A catalog, a full online presence at zgallerie.com and 76 stores nationwide keep Z Gallerie in the forefront for interior designers and stylish influencers, inspiring them each season with the latest in furniture, art, home decor and entertaining.
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CONTACT: Jonathan Gasthalter/Nathaniel Garnick/Alex Jeffrey
Gasthalter & Co.
KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA
INDUSTRY KEYWORD: HOME GOODS RETAIL
SOURCE: Z Gallerie, LLC
Copyright Business Wire 2019.
PUB: 03/11/2019 06:53 AM/DISC: 03/11/2019 06:53 AM