“Through these 32 to 34 stores, we would like to be able to support our DirectBuy customers with custom projects - through special-order kitchen cabinetry and possibly flooring, custom furniture, those types of things.”Īnd it could do this possibly through one of the store-within-a-store formats DirectBuy developed. That would be a win on both fronts.”Īsked exactly how DirectBuy might go about this, Astle said, the club’s customers missed the face-to-dace interaction they used to receive at the former buying club locations since the wind down. Customers are taking advantage of it, and we can leverage it to continue to support DirectBuy members. “The beauty of Z Gallerie,” Astle added, “is it’s there. “With the (return on investment) we’ve seen on the Website, it hasn’t made a lot of sense to continue to invest in brick and mortar at this point. Furniture Today is an HTT sister publication.Ī few months ago, DirectBuy launched a new e-commerce platform that’s gaining traction and making it tough to justify the brick-and-mortar expansion, Astle said. 46 on Furniture Today’s most recent Top 100 with 2018 estimated furniture, bedding and accessory sales of $175 million and 76 stores at yearend, before the filing. Founded by the Zeiden family and later sold to an investment group, Z Gallerie filed for Chapter 11 bankruptcy in March citing a liquidity crunch and failure to invest enough in e-commerce, as well as a costly distribution operation and store expansion that missed goals.ĭirectBuy also announced plans to close 17 Z Gallerie locations, but more closings are planned. Through its DirectBuy Home Improvement affiliate, the home furnishings buying club, backed by KKR Credit Advisors, was the winning bidder at a May auction, paying $20.3 million for the Gardena, Calif.-based retailer’s headquarters and at least 32 stores. DirectBuy, which acquired Z Gallerie assets through a bankruptcy auction, will continue to operate the company as a stand-alone business but sees an opportunity to promote its products and services at the brick-and-mortar stores.
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