Z Gallerie, LLC and Z Gallerie Holding Company, LLC, have filed petitions for relief under chapter 11 in the Bankruptcy Court for the District of Delaware (Lead Case No. 19-10488).  Although a First Day Declaration has not yet been filed, the Debtors have issued a press release announcing that they intend to close as many as seventeen stores and will seek approval of $28 million in DIP Financing to be provided by their existing secured lender, KeyBank NA.  The Debtors appear to intend to pursue a “toggle” reorganization, and have filed both a bid procedures motion and a plan of reorganization.  A creditor matrix can be found here.  Stretto is the proposed claims and noticing agent.  The cases have been assigned to the Honorable Laurie Selber Silverstein.

Contact Norman L. Pernick, G. David Dean or Myles R. MacDonald for more information regarding this matter.