Z Gallerie Files For Bankruptcy, Seeks Sale To Avoid Liquidation

Z Gallerie, a Los Angeles-based home décor retailer, has filed for Chapter 11 bankruptcy. As part of its restructuring, the retailer will close 17 of its 76 stores.

The company expects the Chapter 11 process to last approximately four months. In the bankruptcy filing, the retailer emphasized the need for a fast sale or a debt-for-equity swap to avoid liquidation:

“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…