Company type | Subsidiary |
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Industry | Retail |
Founded | 1979Sherman Oaks, California | in
Founders |
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Headquarters | , United States |
Products |
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Parent |
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Website | zgallerie.com |
Z Gallerie is an American chain of home furnishing, art and decor retail stores founded by siblings Joe Zeiden, Mike Zeiden, and Carole Malfatti in Sherman Oaks, California in 1979. The operation began as a small poster shop and started opening combined retail locations in 1982. The retailer was acquired by Brentwood Associates Private Equity V LP in 2014. [2] Karat Home Inc. acquired Z Gallerie on Jan 19, 2024.
In 1979, three siblings, Joe Zeiden, Carole Malfatti and Mike Zeiden opened a small poster shop in Sherman Oaks, California. [3] Together, they operated the store during the day and framed posters at night in their parents garage in Van Nuys, California.
They moved their production poster company out of their childhood home and into an actual warehouse and before long, the young siblings had a number of locations across Los Angeles, California. They began to conceptualize stores that carried more than just poster art. Their vision was to create a collection of fashion-forward and exclusive home furnishings, art and accessories at an affordable price.
In 1982, the company diversified into home furnishings with the opening of its "Metro Dezign" store in Santa Monica, California. In June 1983 they combined their two stores under one roof and opened its first combination store, which included art, home furnishing and home accessories in San Francisco, California.
On April 10, 2009, the 54-store chain filed for Chapter 11 bankruptcy. On October 27, 2009, the retailer announced they had emerged from Chapter 11 bankruptcy with a $22 million financing package from Wells Fargo Business Credit. [4]
On October 14, 2014, it was announced that Brentwood Associates Private Equity V LP acquired a majority stake in the retailer. [2]
On March 11, 2019, Z Gallerie announced 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. [5]
On July 1, 2019, it was announced that DirectBuy acquired Z Gallerie's assets through a bankruptcy auction for $20.3 million. The acquisition included the retailer's headquarters in Gardena, California and at least 32 stores. It was also announced that 17 locations would be closed with more closures being planned. [1]
As of October 2022, the company had 25 stores remaining in operation, with just three states -- California, Florida and Texas -- accounting for half of all these locations. [6]
On October 16, 2023, Z Gallerie's parent – DirectBuy – filed for bankruptcy, which marked Z Gallerie's third bankruptcy filing. The company planned to close all of its stores and seek a new buyer during the bankruptcy process. If no buyer was found, the company would have converted its bankruptcy to Chapter 7 and liquidate. [7] 21 Z Gallerie locations conducted liquidation sales on October 25, 2023, and all stores shuttered by the end of 2023. [8]
On January 19, 2024, Karat Home purchased furniture retailer Z Gallerie out of bankruptcy for $7.2 million and plans to rebuild the business with a goal to open physical Z Gallerie stores in 2025. [1]
In early 2014, the Department of Justice launched an investigation into a number of wooden bedroom furniture manufacturers who imported goods from China and the retailers to whom the furniture was sold. As part of the investigation, the Department of Justice claimed that Z Gallerie and its suppliers mislabeled products they were importing into the United States in order to avoid customs duties. In 2016, Z Gallerie agreed to pay $15 million to settle the allegations. [9]
Z Gallerie contributed a portion of sales to organizations during many of its grand openings and special events. Z Gallerie partnered with the Pancreatic Cancer Action Network in 2002. Between November 2 to November 4, 2012, it donated 10% of sales and $5 of each purchase of its aubergine Esque candle. [10] In October 2014, it donated 10% of all sales for its location in The Mall at University Town Center. [11] Between November 14 to November 16, 2014 it donated 10% of all sales from the Z Gallerie card. [12]
It also donated 10% of all sales during its grand openings of its Carlsbad location in February 2004, [13] its Watters Creek location in May 2013, [14] its Village Meridian location in June 2014, [15] and its Oakbrook Center in August 2014 [16] to the American Diabetes Association.
Mervyn's was an American middle-scale department store chain based in Hayward, California, and founded by Mervin G. Morris (1920–2021). It carried national brands of clothing, footwear, bedding, bath products, furniture, jewelry, beauty products, electronics, toys, and housewares. Many of the company's stores were opened in shopping malls; however, some locations were operated independently. Based on 2005 revenue, Mervyn's was the 83rd largest retailer in the United States.
Penney OpCo LLC, doing business as JCPenney and often abbreviated JCP, is an American department store chain that operates 656 stores across 49 U.S. states and Puerto Rico. Departments inside JCPenney stores include Men's, Women's, Boys', Girls', Baby, Bedding, Home, Fine Jewelry, Shoes, Lingerie, JCPenney Salon, JCPenney Beauty, as well as leased departments such as Seattle's Best Coffee, US Vision optical centers, and Lifetouch portrait studios.
Toys "R" Us is an American toy, clothing, and baby product retailer owned by Tru Kids and various others. The company was founded in 1948; its first store was built in April 1948, with its headquarters located in Parsippany-Troy Hills, New Jersey, in the New York metropolitan area.
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Pier 1 Imports, Inc., is an online retailer and former Fort Worth, Texas-based retail chain specializing in imported home furnishings and decor, particularly furniture, table-top items, decorative accessories, and seasonal decor. It was publicly traded on the New York Stock Exchange under ticker PIR. In January 2020, Pier 1 had over 1,000 physical stores throughout the United States and Canada. Pier 1 filed for Chapter 11 bankruptcy protection on February 17, 2020, and on May 19, 2020, announced it was asking the bankruptcy court to close all stores, due in large part to the COVID-19 pandemic.
Big Lots Stores, Inc. is an American discount retail chain headquartered in Columbus, Ohio. Founded in 1967 as Consolidated Stores, it has over 1,000 locations across the United States. Big Lots stores typically sell closeout and overstock merchandise from other stores, although some stores also sell furniture.
Brookstone is a chain of retail stores in the United States and China. It was founded as a mail-order business in 1965, when it started selling items, such as dental clamps and other specialty tools. Its first physical location opened in 1973 in Peterborough, New Hampshire. The company's headquarters are currently located in Merrimack, New Hampshire.
Fashion Fair is an enclosed regional shopping mall in Fresno, California, United States, anchored by two Macy's stores, JCPenney, and Forever 21. Originally opened in 1970, Fashion Fair was expanded in 1983 and in 2005. It competes with The Shops at River Park and Fig Garden Village, two outdoor shopping centers in the city of Fresno.
Oakbrook Center is a shopping center established in 1962 and located near Interstate 88 and Route 83 in Oak Brook, Illinois. It is the second largest shopping center in the Chicago metropolitan area by gross leasable area, only surpassed by Woodfield Mall in Schaumburg, Illinois. The mall has retail anchor tenants including Macy's, Nordstrom, and Neiman Marcus, and specialty retailers such as Apple, Tesla, Microsoft, Altar'd State, Oak+Fort, Tory Burch, Allbirds, Arc'teryx, Golden Goose, Fabletics, Rhone, and Warby Parker.
Stein Mart is an American discount men's and women's online retailer & former department store chain based in Jacksonville, Florida. Stein Mart had locations primarily in the Southeast, Texas, and California. Stein Mart stores sold recent trends in clothing for both men and women. Additionally, home decor, accessories, and shoes were all available at discounted prices.
Somersville Towne Center is a regional shopping mall located in Antioch, California. Previously named County East Mall until 2004, the 501,259 square feet (46,570 m2) mall is managed by Urban Retail Properties. Originally opened in 1966, it is strategically positioned in one of the fastest growing areas of the San Francisco Bay Area, east Contra Costa County. Along with high population growth, east Contra Costa County is also experiencing sizable household income increases.
Charlotte Russe Inc. is an American clothing retail chain store that operates in the United States, headquartered in Toronto, Canada. Fashions in the stores are targeted at women in their teens and twenties. As of September 2023, Charlotte Russe operates 196 stores, mostly in malls and shopping centers.
Heilig-Meyers was a retail furniture store chain founded in Goldsboro, North Carolina, in 1913 by two Lithuanian immigrants, W. A. Heilig and J. M. Meyers. Its corporate headquarters was in Richmond, Virginia. The chain grew to become the largest furniture retailer in the United States in the 1990s, ultimately having over 1,000 stores nationwide.
Art Van Furniture Inc. was an American furniture retail store chain, with stores across the Midwestern United States. Founded in 1959, the company was headquartered in Warren, Michigan, and claimed to be the largest furniture retailer in the Midwest at its peak. In 2020, the company filed for bankruptcy and closed all of its stores.
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Retail apocalypse refers to the closing of numerous brick-and-mortar retail stores, especially those of large chains, beginning around 2010 and accelerating due to the mandatory closures during the COVID-19 pandemic.
The COVID-19 pandemic has taken a sharp economic toll on the retail industry worldwide as many retailers and shopping centers were forced to shut down for months due to mandated stay-at-home orders. As a result of these closures, online retailers received a major boost in sales as customers looked for alternative ways to shop and the effects of the retail apocalypse were exacerbated. A number of notable retailers filed for bankruptcy including Ascena Retail Group, Debenhams, Arcadia Group, Brooks Brothers, GNC, J. C. Penney, Lord & Taylor and Neiman Marcus.