Upscale Retailer Z Gallerie Enters Bankruptcy, Angles for Sale

  • Latest victim of retail apocolypse plans auction, stays open
  • Company reports $138M in debt and less than $2M in cash
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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 on Monday. 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.