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The Raleigh interior designer who owes her creditors more than $3 million admitted under oath Thursday that she lied to clients about purchasing inventory.
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Alexandra “Zandy” Overcash Gammons, the owner of Miretta Interiors, filed for personal and commercial bankruptcy in March, The News & Observer previously reported. Gammons and her business, Warehouse at 1107 LLC, have been sued in Wake County Superior Court by two clients alleging she never provided more than $120,000 in furnishings; those suits are on hold while her bankruptcy cases proceed.
Though Gammons owes more than $3.2 million to her creditors, according to her bankruptcy filings, she has stated she doesn’t have enough money to pay them all back. Gammons wrote in court documents she estimates she has $1.3 million in personal assets and $100,001 to $500,000 in business assets.
Gammons has asked to keep her $1.3 million North Raleigh home, which she jointly owns with her husband, a vice president and financial adviser at Merrill Lynch, The N&O previously reported. Though Gammons’ husband earns over $30,000 a month, her filings state his pay will decrease by $225,000 annually in June “due to end of recruitment incentive from employer.”
All told, Gammons has listed more than 60 creditors as of Thursday afternoon. And a New York judge entered a default judgment against her last week in a suit filed by a loan company she failed to pay back.
After an initial hearing on her personal bankruptcy last month, Gammons’ trustee held a second hearing Thursday morning to let creditors ask her questions in her commercial bankruptcy case. Ten people asked Gammons questions during the roughly 30-minute meeting, largely focusing on where the inventory they’d paid for was.
Gammons told one former client’s attorney, Ian Richardson, some of the items his client paid for were never ordered, despite previous assertions that they were.
“OK,” Richardson said. “So were you lying to him about that?”
“Yes,” Gammons said.
Gammons explained during another client’s line of questioning that she’d used clients’ payments for loans, rent and other business expenses — including money she owed previous clients.
“So am I to understand that the money which we paid for the furniture was never used for our goods?” the client asked.
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“Correct,” Gammons said.
Several clients asked Gammons how long she’d known Miretta Interiors was in financial trouble. Gammons initially told them she began considering bankruptcy in February, though her attorney, William Janvier, later noted they’d had an “exploratory meeting” in December. In a court filing Thursday evening, Gammons said she misspoke and now recalled discussing bankruptcy in mid-January.
Gammons applied for additional loans at the end of December, but wasn’t approved, she testified. She ultimately filed for bankruptcy in late March.
Questioning from one client Thursday indicated Gammons had accepted a $7,000 payment from her in November and worked with her through at least January.
“I really thought I was going to be able to move forward,” Gammons told her.
Several creditors focused on a $10,000 payment Gammons made to her husband in September. She testified he’d given her an $18,000 or $19,000 loan for the business and that it was common for him to loan her money.
“He’s loaned me a ton of money over the years,” Gammons said.
When the owner of a moving company she often used asked Gammons why she’d prioritized repaying her husband over other creditors, Gammons said she didn’t know.
“I’m sorry,” she said.
But she was adamant that clients’ money never supported her lifestyle, including her membership at the exclusive North Ridge Country Club, which charges a $75,000 initiation fee and $820 monthly fees, according to The Triangle Business Journal.
“I haven’t paid myself in the last several years,” Gammons testified.
Editor’s note: This article was updated May 15, 2026, to reflect an additional filing from Gammons noting she’d recalled discussing bankruptcy in mid-January.
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This story was originally published May 14, 2026 at 4:45 PM.