Z Gallerie to Keep 34 Stores Open Under Bankruptcy Plan

Thirty-four of Z Gallerie LLC’s furniture stores will stay open for business under a revised bankruptcy reorganization plan.

U.S. Bankrtupcy Court Judge Laurie Selber Silverstein confirmed the plan at a hearing in Wilmington, Del. June 13.

DirectBuy Home Improvement, Inc., a Merrillville, Ind.-based membership savings club that sells home furnishings and decor, will acquire substantially all of the Z Gallerie’s assets for a deal valued at $20.3 million.

The transaction allows Z Gallerie to keep operating as a going concern and lets 500 employees to keep their jobs, Joshua A. Sussberg of Kirkland & Ellis LLP in New York told ...