Liquidation sales are a kind of funeral for something that is not yet dead.
In the early days of the liquidation process, stores often look the same as they did before the company filed for bankruptcy. There may be gaps in merchandise, missing sizes, or popular products that sell out quickly, but the store you’re closing still looks like the brand it once was.
However, as the process progresses, things get a little bleaker. Some familiar employees could disappear if they find new jobs and regular inventory becomes a sad, coveted lot offered at increasingly lower prices.
Related: Popular entertainment company faces risk of Chapter 11 bankruptcy
In many cases, an outside company conducts the liquidation and, at one point, some of the merchandise sold was not even offered by the bankrupt chain. This is something buyers should be very wary of, especially if the company being liquidated offered high-end products.
Be careful to make sure that what you think you are buying is actually what you are buying, because there are generally no refunds or returns.
In the final days of a store liquidation, things get really sad. In most cases, anything inside the walls will sell. That can include fixtures, shelving and even computers, employee lockers or anything else that is not owned by the owner.
For the past few months, fans of Christmas Tree Shops. Tuesday Morning and Bed, Bath & Beyond have seen those chains go through the liquidation process.
Now, Z Gallerie, a furniture and home decor chain, will suffer the same fate.
Image source: Hanna Lassen/Getty Images
Z Gallerie had a quick end
Z Gallerie did not have as high a profile as Bed Bath & Beyond or Tuesday Morning, and lacked the cult following of Christmas Tree Shops. The chain had a strong fan base as it was a fairly unique retailer, which can be seen by how the company is described on its website.
“Founded in 1979 as a poster shop in California, Z Gallerie has evolved into a modern glamor gallery. Over the years, we have cultivated an eye for art that has expanded our repertoire to home furnishings. “Today, we remain dedicated to bringing her unparalleled style backed by our passion for the artistic home,” the network shared.
That’s a lot of words that don’t really say much, but it’s fair to say that the company sells high-end furniture, as well as home items like rugs, pillows, art, and mirrors. Z Gallerie, which had survived two previous Chapter 11 bankruptcies, operated 21 stores in nine states, as well as an online store.
The company had filed for Chapter 11 bankruptcy on Oct. 16, but quickly moved into a liquidation sale.
Z Gallerie begins liquidation sale
Z Gallerie’s liquidation sales began rather quietly on October 25th. B. Riley Retail Solutions, part of B. Riley Financial (RILY) – Get a free report will operate the sale for the furniture and home decoration chain, which has 20 stores spread throughout the country.
The chain will mark down merchandise at all locations with initial offers of up to 40% off.
“This is a unique opportunity to purchase high-quality home decor at deeply discounted prices. We encourage shoppers to visit the nearest store before merchandise runs out. This offer will be available for a limited time only,” said B Riley Retail Executive Vice President of Solutions, Tim Shilling.
All sales are final. Customers can still return items purchased before clearance sales subject to the chain’s original return policy. Gift cards will be accepted until November 15.
The chain has not said what day it will close its doors for good, and the actual end date may depend on the pace of liquidation sales.
