Online furniture and appliance seller DirectBuy Home Improvement Inc., a subsidiary of e-commerce business CSC Generation, has won a bankruptcy auction for home-decor retailer Z Gallerie LLC with a bid valued at $20.3 million, the Wall Street Journal reported. DirectBuy’s bid comprises $7.7 million cash and $12.6 million in debt provided by KKR Credit Advisors and B. Riley Financial Inc , according to papers filed in the U.S. Bankruptcy Court in Wilmington, Del. CSC Generation, an e-commerce business founded by Justin Yoshimura, owns DirectBuy and several retail brands; CSC purchased the intellectual property of Bon-Ton Stores Inc. last year. The proposed transaction will be finalized through a chapter 11 plan which already has been filed with the bankruptcy court, said Joshua Sussberg, a Kirkland & Ellis LLP lawyer representing Z Gallerie. Judge Laurie Selber Silverstein is scheduled to consider Z Gallerie’s chapter 11 plan on June 11, court papers say.
