NEW YORK — Christmas Tree Shops is poised to liquidate all of its stores roughly two months after the struggling home-goods retailer filed for Chapter 11 bankruptcy protection.
When Christmas Tree Shops filed for bankruptcy in early May, the Middleboro, Massachusetts-based chain aimed to complete restructuring and exit Chapter 11 as a “financially stronger retailer” by the end of August. At the time, Christmas Tree Shops planned to close a small number of underperforming stores.
In a court filing last week, however, Christmas Tree Shops confirmed that it defaulted on a $45 million bankruptcy loan and had agreed to liquidate its more than 70 remaining locations across 20 states, unless a buyer emerges in the final hour.
Out of business sales could start as soon as Thursday, per court documents. Landlords also have until Thursday to file objections.
"Quite simply, the debtor doesn’t have the time nor the money to go forward with the plan (to exit bankruptcy),” Harold Murphy, a lawyer representing the retailer, said during a court hearing last week, per the Wall Street Journal.
The Associated Press reached out to Murphy and other attorneys representing Christmas Tree Shops and its stakeholders for further comments Wednesday.
Christmas Tree Shops' history dates back to the 1950s, when the original small holiday store opened on Cape Cod, in Yarmouth Port, Massachusetts, according to the company website. In 1970, Chuck Bilezikian purchased the seasonal business, transforming it into a destination for one-of-a-kind items and low prices that became a year-round shopping destination largely anchored in the Northeast.
Over time, Christmas Tree Shops expanded into more states and moved beyond holiday items. The chain recently worked to rebrand itself as “CTS” — in hopes of underlining that its products are not isolated to seasonal goods.
In 2003, the Christmas Tree Shops chain was acquired by Bed Bath & Beyond, which also declared bankruptcy earlier this year. In 2020, the chain was sold to Handil Holdings, led by retail veteran Pam Salkovitz and entrepreneur Marc Salkovitz.
Sourse: abcnews.go.com
