![]() The closures caused the firm to exit several markets, including Ohio, consolidate its network of distributors, and shed about 350 employees. Prior to its April 2009 bankruptcy filing, the furniture seller shuttered about 20 underperforming stores and a distribution center in Atlanta in response to the slowdown in the economy. ![]() The furniture retailer opened a store in Redmond, Washington, and in late 2011 opened two more shops: one each in Texas and Georgia. Since emerging from bankruptcy protection, Z Gallerie spends its time prudently shopping for new locations for its shops while the company keeps a close eye on the performance of its existing stores. Z Gallerie exited Chapter 11 in fall 2009 after a six-month stint in bankruptcy. The firm's eclectic pieces are sold through its website and some 55 US retail locations in nearly 20 states. on average, feature bedding and pillows, dinnerware, glassware, rugs, lamps, candleholders, clocks, frames and albums, games, and gifts. Today Z Gallerie stores, which span some 10,000 sq. Initially Z Gallerie (later joined by sister Carole Malfatti) sold poster art, but in the 1980s the trio added home furnishings and accessories to the merchandising mix. “We definitely anticipate DirectBuy members benefiting from the Z Gallerie acquisition and vice versa,” he said.Cain and Abel they're not! Brothers and executives Joe and Mike Zeiden founded Z Gallerie in 1979, using their parents' garage for a warehouse and production facility. “Through these 32 to 34 stores, we would like to be able to support our DirectBuy customers with custom projects - through special-order kitchen cabinetry and possibly flooring, custom furniture, those types of things.”Īnd it could do this possibly through one of the store-within-a-store formats DirectBuy has developed. That would be a win on both fronts.”Īsked exactly how DirectBuy might go about this, Astle said, the club’s customers have missed the face-to-dace interaction they used to receive at the former buying club locations since the wind down. Customers are taking advantage of it, and we can leverage it to continue to support DirectBuy members. “The beauty of Z Gallerie,” Astle added, “is it’s there. “With the (return on investment) we’ve seen on the Website, it hasn’t made a lot of sense to continue to invest in brick and mortar at this point. 46 on Furniture Today’s most recent Top 100 with 2018 estimated furniture, bedding and accessory sales of $175 million and 76 stores at yearend, before the filing.Ī few months ago, DirectBuy launched a new e-commerce platform that has been gaining traction and making it tough to justify the brick-and-mortar expansion, Astle said. ![]() It simultaneously announced plans to close 17 locations, but more closings are planned. Founded by the Zeiden family and later sold to an investment group, Z Gallerie filed for Chapter 11 bankruptcy in March citing a liquidity crunch and failure to invest enough in e-commerce, a costly distribution operation and store expansion that wasn’t meeting performance goals. Through its DirectBuy Home Improvement affiliate, the home furnishings buying club, backed by KKR Credit Advisors, was the winning bidder at a May auction, paying $20.3 million for the Gardena, Calif.-based retailer’s headquarters and at least 32 stores. DirectBuy, which acquired Z Gallerie assets through a bankruptcy auction this past month, will continue to operate the Top 100 company as a stand-alone business but sees an opportunity to promote its owns products and services at the brick-and-mortar stores, too.
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