by Purchase includes lifestyle retailer’s intellectual property and assets to support its e-commerce business
FORT WORTH, Texas — E-commerce furniture platform Karat Home has completed its purchase of the e-commerce assets of retailer Z Gallerie, which filed for Chapter 11 bankruptcy this past October.
The transaction was finalized on Jan. 19.
Officials did not reveal a price or other terms of the acquisition, which includes the retailer’s intellectual property and assets to support its e-commerce business.
This includes some 8,000 SKUs in the Z Gallerie product portfolio along with the retailer’s dedicated distribution and staff at its 230,000-square-foot Gardena, California warehouse. It joins Karat Home’s two other warehouses in New Jersey and Houston, providing an established coast-to-coast distribution network for the line.
Karat Home, a U.S. subsidiary of Chinese manufacturer J&S Yard, described the purchase as a strategic milestone for the company, as it will expand its footprint in the home décor and e-commerce channel, “solidifying its commitment to providing high quality products and exceptional customer experiences. The acquisition aligns with Karat Home’s vision to enhance its product portfolio and strengthen its position as an industry leader.”
In an interview with Home News Now, Karat Home CEO Scarlett Fan said the company was pleased to announce the acquisition. She noted that the Z Gallerie consumer website has been relaunched and will operate independently of the Karat Home portal, which primarily serves as a B2B resource for brick-and-mortar retailers and other e-commerce customers such as Wayfair.
“We think of Z Gallerie as a really unique brand,” she said. “Z Gallerie has great loyalty from the consumer and we will definitely run Z Gallerie as a separate business and will have a whole different business strategy for Z Gallerie.”
The company will use its product development and manufacturing experience of its Chinese factory to build product for the Z Gallerie line as well as other shared services within the supply chain.
However, in addition to having its own dedicated website, the Z Gallerie segment will have its own marketing and sales support, noted Jie Melchiors, general manager of Karat Home.
Fan added that selling directly to consumers on the Z Gallerie platform, the company will now have an even greater inside track into which styles are resonating with customers in the marketplace, which will in turn help guide its product development for retail accounts.
“To have more understanding about the end consumer, that will definitely help the whole Karat Home business, whether on the wholesale side or the DTC side,” she said. “The more we are in touch with the end user, the more we understand what value to supply and we can help our B2B business provide a better solution for the end user. We can help them be successful and this will help us be more successful.”
Melchiors described the acquisition as a major strategic move for the company.
“Acquiring Z Gallerie is also about gaining more customer trust and exposing our company as a player in the industry,” she added. “As an overseas manufacturer, we know the importance of how the brand works in the consumer market. Becoming part of this brand is a big milestone for us. Having this legacy brand will enhance our presence in the United States.”
Karat Home added that it “will work diligently to seamlessly integrate Z Gallerie into its operations, ensuring a smooth transition for both employees and customers. The company remains steadfast in its mission to provide unique and trendsetting home decor solutions.”
The company also noted that Z Gallerie owner CSC Generation assisted with the closing of the transaction and that CSC will provide ongoing transition services. Charlotte, North Carolina-based Stump & Company served as investment banker to the seller.
Karat Home officials also will be at the Las Vegas Market next week where it will be meeting with vendors, customers and service providers.
ZGallerie always has great items at a great price point. But their customer service and delivery was terrible and anything but white glove. I purchased a 3k couch and they left it one the front yard because they were running behind and werent being paid overtime.. So when I saw the opening with new ownership I though YAY. I went to the Dallas store; I understand its one of two. When I called the store I came to find out they dont have a phone number. I purchased a painting from the store and they told me that since the warehouse is in FT Worth I would be getting it in 3-5 days Friday at the lastest for sure. I ordered it on Sunday, so I was expected the tracking number to be sent on Monday but it wasnt . I called 30 minutes on the phone and nothing they werent sure where to find my order and promised a call back. Never happened . I repeated this for 2 days. On Thursday the sales person called from his personal number to ask me for address because they were delivering it today and wanted to confirm. So I stayed home waiting because I had to sign for it. Now its 3 pm and I call back to customer service and finally they find the tracking number and while on the phone I check and they have the address wrong and they send it to Atlanta TX = Not Frisco TX. Then I call back the sales rep on his personal phone who huffs about how he doesnt have time for this. Ic call Karat homes and a perosn says she will do something and she doesnt until a day later to correct the address. I call Fex EX to insure it was done. They tell me that that they cant tell me anything because the address I gave them while being in their system doesnt match my name and so they cant provide me any info., I called the people at Customer Service and they said that I just have to wait till the item is mis delivered and sent back then they will send out a replacement ; but I can buy a new one and get the other one refunded when they get it back. I call Scarlett Fan after findign her number and she didnt respond. So while the products are nice . Once they get your money they could care less if you ever get your products . I paid for shipping by the way. I am going to be out of town so it absolutely being here on Friday was why I got the painting from them vs another store where they offer white glove delivery and the painting was signficantly more but it would have been delivered on time and having purchased from them previously ; they have staff to assist. Avoid this location – Dallas beware unless you like the item so much that you are willing to deal with hours on the phone , sales staff and leadership who think their time is more important that you. !