Z Gallerie

Z Gallerie is a 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] Z Gallerie is headquartered in Los Angeles, California with an additional buying office in Berkeley, California.

Z Gallerie
Subsidiary
IndustryRetail
Founded1979 (1979) in Sherman Oaks, California
Founders
  • Joe Zeiden
  • Mike Zeiden
  • Carole Malfatti
Headquarters
Gardena, California
,
United States
Number of locations
32 (2020)[1]
Products
  • furniture
  • art
  • decor
  • lighting
  • housewares
  • bedding
  • rugs
ParentZ Gallerie (1982-2014)

Brentwood Associates Private Equity V LP (2014–2019)[2]

DirectBuy (2019–present)[1]
Websitezgallerie.com

As of July 2019, the company is owned by DirectBuy Home Improvement, Inc.

History

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]

Anti-dumping

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.[6]

Charitable Giving

Z Gallerie became involved with the Pancreatic Cancer Action Network in 2002 as a tribute to their mother, Shirley Zeiden, who died from the disease that year. To date, they have donated more that half a million dollars to the organization.[7] Z Gallerie has also been involved with the American Diabetes Association Research Foundation in memory of Daniel Zeiden who died in 1995 due to diabetes related complications. Other foundations supported by Z Gallerie include USC Marshall School of Business, OUR HOUSE Grief Support Center, Dream Street Foundation and Shane's Inspiration.

References
  1. Engel, Clint (July 1, 2019). "DirectBuy acquires Z Gallerie". HFN. Retrieved August 7, 2019.
  2. Gelsi, Steve (October 14, 2014). "Z Gallerie gets new look with purchase by Brentwood". PE Hub Network. Retrieved August 7, 2019.
  3. http://www.zgallerie.com/t-about.aspx.
  4. McIntosh, Jay (October 27, 2009). "Z Gallerie emerges from Chapter 11 bankruptcy". Furniture Today. Retrieved August 7, 2019.
  5. Hill, Jeremy (March 11, 2019). "Upscale Retailer Z Gallerie Enters Bankruptcy, Angles for Sale". Bloomberg. Retrieved April 26, 2019.
  6. "California-Based Z Gallerie LLC Agrees to Pay $15 Million to Settle False Claims Act Suit Alleging Evaded Customs Duties". www.justice.gov. April 27, 2016. Retrieved June 30, 2019.
  7. "Z Gallerie - Pancreatic Cancer Action Network/". Retrieved August 17, 2018.
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