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Bloomberg
The gloomy state of brick-and-mortar retail has helped push another chain into bankruptcy, and this one is planning a speedy sale in order to dodge liquidation.
Z Gallerie LLC, the upscale retailer known for its eclectic home decor, filed for bankruptcy in Delaware. The company blames the filing on self-imposed problems — namely a failure to invest enough in e-commerce, the addition of a costly distribution center and an expansion that didn’t meet performance targets.
The latest victim of the so-called retail apocalypse says trends in brick-and-mortar sales worsened the missteps that led Z Gallerie to bankruptcy, according to court papers. The filings emphasize a need for fast proceedings to avoid the fate of retailers who sought to reorganize but were forced to liquidate.
“Convincing third parties of the turnaround story in a short period of time –and convincing them to work with the debtors towards the value maximizing outcome preferred by the debtors — will determine whether Z Gallerie survives,†Interim Chief Executive Officer Mark Weinstein wrote in a declaration. Los Angeles-based Z Gallerie has more than 1,000 employees, operates 76 sto-
res and generated over $200 million in sales last year.