Define Chapter 11?

Tuesday, April 21, 2009 | Category: Shops and Showrooms

Not sure what this means exactly- saw the below article on The Dallas Morning News website. Is it cause to be worried?

Z Gallerie Inc., a Gardena, Calif.-based home decor retailer with two stores in Dallas, filed for Chapter 11 bankruptcy Friday.

The privately held chain said it voluntarily filed to remove its liability from leases and to strengthen its balance sheet.

Last month, it closed a distribution center in Atlanta and 21 stores, leaving several markets. A spokesman said there are no plans to close its seven Texas stores.

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3 Comments to 'Define Chapter 11?'

maison21 21 Apr 09 at 3:04 am

uh oh.

Elaine 21 Apr 09 at 3:53 am

I think there are different kinds of bankruptcy. This one allows the business to continue operating, but allows them to restructure their financial obligations. Ritz Cameras also had filed for chapter 11 but still have been fulfilling orders for customers. I hope that’s correct and that it helps…

Daine 21 Apr 09 at 6:16 pm

Elaine is correct, there are many types of CH11 filings. It doesn’t sound to me like the company is in trouble at all and I’ve read lots of articles about it. Many companies have gone through this. I’m going to continue to shop. It’s my favorite home store!

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