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Z Gallerie gets OK to pay vendors

Says it has cash to continue operations

Gardena, Calif. —Z Gallerie says it has the cash to continue operating its 57 stores and that it has received bankruptcy court approval to pay vendors going forward.

The home furnishings retailer, which filed for Chapter 11 bankruptcy protection April 10, said it has since received court permission to pay any pre-petition wages and benefits, as well as to honor existing customer programs and deposits.

Vendors doing business with the retailer will be paid on an administrative priority basis for goods and services received after the filing date. Bankruptcy law prohibits outstanding payments for goods and services received by the retailer before then, the company said.

Z Gallerie closed 21 underperforming stores earlier this year. It now operates 56 full-service stores and an outlet in 18 states.

(Reported by Clint Engel of HTT's sister publication Furniture Today.)

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