Z Gallerie

Z Gallerie

Company type	Private
Industry	Retail (home furnishings, artwork, decorative items)
Founded	1979
Founder	Joe Zeiden, Mike Zeiden, Carole Malfatti
Headquarters	Gardena, California , United States
Products	Home furnishings, artwork, decorative items
Owner	Karat Home Inc.

Z Gallerie is a U.S.-based retail chain specializing in home furnishings, artwork, and decorative items, established in 1979 by siblings Joe Zeiden, Mike Zeiden, and Carole Malfatti in Sherman Oaks, California. Initially operating as a modest poster shop, the business expanded into combined retail outlets by 1982. Ownership changed hands when Brentwood Associates Private Equity V LP purchased the company in 2014, followed by acquisition by Karat Home Inc. in January 2024.

History

The origins of Z Gallerie trace back to 1979 when Joe Zeiden, Carole Malfatti, and Mike Zeiden opened a poster store in Sherman Oaks, California. Their early operations involved framing posters in their family garage before growing into multiple locations throughout Los Angeles. The founders broadened their offerings to include trendy home furnishings, art pieces, and accessories at accessible price points.

By 1982, the company ventured into home furnishings with the launch of the "Metro Dezign" store located in Santa Monica, California. The following year, Z Gallerie combined art and home décor under one roof at their initial hybrid store in San Francisco.

On April 10, 2009, the retailer filed for Chapter 11 bankruptcy protection but restructured and emerged six months later after securing $22 million in financing from Wells Fargo Business Credit. In 2014, Brentwood Associates acquired a controlling interest.

Z Gallerie again sought Chapter 11 protection on March 11, 2019. Shortly thereafter, on July 1, 2019, DirectBuy purchased the company’s assets for $20.3 million. This acquisition included the headquarters located in Gardena, California and at least 32 retail outlets; however, several stores were shuttered as part of restructuring efforts.

By October 2022, Z Gallerie operated 25 stores mainly situated in California, Florida, and Texas. On October 16, 2023, its parent company DirectBuy filed for bankruptcy—marking Z Gallerie's third such filing—and announced intentions to close all remaining stores unless a buyer was found. Clearance sales commenced on October 25, 2023, with plans to complete store closures by the end of that year.

On January 19, 2024, Karat Home acquired Z Gallerie from bankruptcy proceedings for $7.2 million and revealed intentions to rejuvenate the brand with new physical locations slated to open in 2025.

Anti-dumping

In early 2014, the United States Department of Justice launched an investigation targeting wooden bedroom furniture manufacturers importing products from China, implicating retailers including Z Gallerie. The DOJ accused Z Gallerie and its suppliers of mislabeling imports to avoid customs duties. The matter was resolved in 2016 when Z Gallerie agreed to pay $15 million to settle the allegations.

Charitable causes

Philanthropy has been an integral part of Z Gallerie's corporate approach through contributions linked to sales during grand openings and special campaigns. Since initiating a partnership with the Pancreatic Cancer Action Network in 2002, the company has donated 10% of proceeds from select products and store events—highlighted by its aubergine Esque candle campaign in 2012 as well as various new store launches. Moreover, Z Gallerie has supported the American Diabetes Association by allocating 10% of sales during grand openings at locations including Carlsbad (2004), Watters Creek (2013), Village Meridian (2014), and Oakbrook Center (2014).

See also

• Retail apocalypse
• List of retailers affected by the retail apocalypse