Z Gallerie Closing More Stores as Part of Its Bankruptcy, 7 in Texas

Z Gallerie, which filed for Chapter 11 bankruptcy in March, has new owners and a new plan for stores.In May, DirectBuy Home Improvement, a subsidiary of Merriville, Indiana-based e-commerce business CSC Generation, purchased Z Gallerie. The company's winning bid was valued at $20.3 million, according to filings in the U.S. Bankruptcy Court in Delaware.Z Gallerie, a California-based retailer that filed for bankruptcy once before in 2009, closed 17 stores initially saying many of its new stores didn't perform as expected, while it went to the expense of opening a new distribution center. Recently, 27 more Z Gallerie leases were rejected including six in Texas that are closing this summer. Included are Z Gallerie in Galleria North in Dallas, Watters Creek in Allen and the Shops at Clearfork in Fort Worth. Three others in Texas are in Austin, Houston, Sugar Land and The Woodlands.That leaves 34 Z Gallerie stores open. Among those are three local stores: Knox Street in Dallas, Shops at Willow Bend in Plano and Southlake Town Square.CSC Generation Holdings last year purchased out of bankruptcy the intellectual property of Bon-Ton, and its various department store brands that operated in the Midwest.The furniture business has become one of the most competitive with new entrants and accelerated competition from online retailers Wayfair and Amazon. Also Walmart and Target have expanded furniture and decorative accessories, which is also a big category for most furniture stores.Here's a list of the latest store closings:  Continue reading...