A massive retailer in Florida is now grappling with bankruptcy after filing for Chapter 11 three times already.
Concerns are growing over popular furniture retailer Z Gallerie as it struggles to raise cash, opening the possibility of liquidation.
For now, the company is looking for a potential buyer which would allow the company to restructure its finances and keep its doors open.
“Z Gallerie first opened in 1979 and now has 21 stores across the United States. Florida has the most stores of any state, with seven, and they may close before the end of the year unless the business is acquired,” reports Ash Jurberg.
“According to the latest bankruptcy filing, this business is running out of cash due to “underperforming retail stores, adverse macroeconomic trends, and industry-specific headwinds.”
The company first filed for Chapter 11 bankruptcy in 2009 and again later in 2019.
Z Gallerie had nine stores in Florida, but only the following seven stores currently remain open today:
- 9100 Strada Pl # 2130, Naples, Florida 34108
- 600 Silks Run # 1260, Hallandale Beach, Florida 33009
- 140 University Town Center Dr # 156, Sarasota, Florida 34243
- 4024 Eastgate Dr, Orlando, Florida 32839
- 2223 Westshore Blvd, Tampa, Florida 33607
- 309 Plaza Real, Boca Raton, Florida 33432
- 14551 5th St, Pembroke Pines, Florida 33027
“The filing was sparked by Z Gallerie’s dwindling cashflow, which has fallen below $500,000.
To get the business back on track, leadership has retained M&A firm Stump & Company to market Z Gallerie assets and find a potential buyer.
If the efforts for a strategic sale are unsuccessful, the brand’s assets will be liquidated,” reports Retail TouchPoints.
This is a developing story.
Also Read: A US Company Now Declares An Unexpected Bankruptcy
Other Economy News Today
Florida now has massive departures as hundreds of thousands of residents leave according to new data from the U.S. Census Bureau.
The report shows that over 275,000 people left Florida and moved to another state in 2022.
Of those leaving Florida, 46,884 moved to Georgia, 42,301 moved to North Carolina, 36,200 to Tennessee, 31,456 to South Carolina, and 29,975 relocated to Texas.
Experts have weighed in stating that Florida residents are moving out of the state primarily due to the increasingly high insurance rates.
Newsweek reported, “Home insurance premiums have tripled in the state in the past five years, with residents currently paying on average more than $4,200 per year. The national average is $1,700.”
“When you have a home that’s one million dollars or less, your insurance premium becomes higher than your mortgage,” says Oscar Seikaly, chief executive of NSI Insurance Group.
The Wall Street Journal reported that even the mayor of Palm Beach County, Gregg Weiss, has decided to drop his insurance when the premium doubled to about $20,000.
“I know a lot of people who have done the same thing. The market doesn’t make sense anymore,” said the mayor.
While many residents are leaving Florida, California departures still significantly outweigh the state.
343,000 people left California and moved to another state in 2022, the highest number of any state in the country.
Of those leaving California, 102,000 moved to Texas, 74,000 to Arizona, 50,000 to Florida, and 48,000 to Nevada.
The rising costs of living, especially in younger people, are the primary cause of departures according to experts.
“We are losing younger folks, and I think we will see people continuing to migrate where housing costs are lower,” says Manuel Pastor, a professor at the University of Southern California.
Also Read: Massive Layoffs in Florida Deepen According to New Data
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