In the evolving landscape of retail insolvency, bankruptcy filings persist as we advance into early 2026, with yet another retailer seeking judicial protection.
Ziviea, Inc., a retailer specializing in compression garments, has become the latest entrant on this list.
The firm, operating under the umbrella of CompressionSale.com, is endeavoring to revamp its financial structure through a court-supervised proceeding.
Ziviea, Inc. Initiates Chapter 11 Bankruptcy Proceedings
On March 6, 2026, Ziviea, Inc. executed a voluntary bankruptcy petition, as reported by PACER. The Chapter 11 petition was duly signed by Arun Reddy, the company’s CEO and Director, who oversees operations under the CompressionSale.com brand.
Legal counsel for the company, Attorney Daniel A. Velasquez, of Latham Luna Eden & Beaudine LLP, is representing Ziviea, Inc. in the U.S. Bankruptcy Court for the Middle District of Florida.
While specific reasons for the bankruptcy have not yet been disclosed by Ziviea, court documents indicate a steady decline in revenue over the past two years.
The retailer’s gross income plummeted from approximately $11.17 million in 2024 to $8.73 million in 2025. Currently, revenue stands at a mere $406,000 prior to the filing.
The Chapter 11 designation permits Ziviea, Inc. to maintain its operations under judicial oversight while undergoing financial reorganization. This recent filing allows the company to continue functioning as it seeks to alleviate its debt burdens.
Overview of the Company
Ziviea, Inc., known for its online presence as CompressionSale.com, provides an array of compression stockings alongside various orthopedic products. Their offerings are specifically designed to enhance circulation and promote leg comfort.
Throughout its lengthy tenure, CompressionSale.com has catered to customers with a diverse range of medical compression hosiery and braces.
The retailer’s products have been instrumental in addressing ailments affecting the knees, ankles, back, elbows, shoulders, wrists, neck, and abdomen.
Moreover, the website highlights that CompressionSale.com features products sourced from esteemed brands, including Jobst, Mediven, Futuro, Sigvaris, Activa, Juzo, and Truform.
Key Case Information
Documentation submitted to the court indicates that Ziviea, Inc. is indebted to approximately 1 to 49 creditors. The filing specifies that funds will be available for potential distribution to unsecured creditors.
First Internet Bank of Indiana emerges as the principal creditor, owed about $3.77 million stemming from a contested loan.
Among other significant unsecured creditors are American Express and Capital One, to whom the retailer owes close to $235,000 and $500,000, respectively.
Additionally, Ziviea, Inc. has financial obligations to Shopify ($450,000) and product suppliers like Juzo ($50,000) and Essity ($500,000).
Additional pertinent information included in the Chapter 11 petition of Ziviea, Inc. includes:
- Filing Date: March 6, 2026
- Court and Jurisdiction: U.S. Bankruptcy Court for the Middle District of Florida
- Type of Filing: Active, Voluntary Petition
- Chapter: 11
- Case Number: 3:26-bk-00938-JAB
- Estimated Assets: $100,001 – $500,000
- Estimated Liabilities: $1,000,001 – $10 million
- Reason for Filing: Restructure business under court supervision
Records indicate that Ziviea, Inc. has filed a series of additional documents with the court, comprising a summary of assets and liabilities, a roster of equity security holders, a verification of the creditor matrix, and a disclosure of attorney compensation. Schedules A/B, D, E/F, G, and H have also been filed.
Ziviea, Inc.’s recent Chapter 11 filing underscores the economic challenges besieging retailers, irrespective of the demand for specialized medical products. The company aspires to restore its financial viability through this court-guided reorganization process.
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