Z Gallerie wins final approval of store-closing sales, DIP financing

By Caroline Salls

Pittsburgh, April 10 – Z Gallerie, LLC obtained final court approval to conduct store-closing sales and to access $28 million in debtor-in-possession financing, according to orders filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

As part of the restructuring process, Z Gallerie said last month that it expects to close up to 17 underperforming stores in the coming months.

KeyBank, NA is the DIP financing lender.

The financing consists of $8 million in new money and a $19.25 million roll-up of pre-bankruptcy loans.

The facility will mature 120 days from the effective date.

Interest will accrue at Libor plus 775 basis points.

Z Gallerie is a Gardena, Calif.-based furniture retailer. It filed bankruptcy on March 11 under Chapter 11 case number 19-10488.

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