WASHINGTON — Christmas Tree Shops plans to close all of its remaining stores and has kicked off going out of business sales two months after the struggling home-goods retailer filed for Chapter 11 bankruptcy protection.
When the Massachusetts-based chain filed for bankruptcy it 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 just 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.
Going-out-of-business sales with discounts up to 50% off are now underway, according to a post on the retailer's website and an announcement Friday from the company managing the liquidation.
According to Bloomberg, the company's lawyer said during a court hearing Friday that the retailer is negotiating with lenders to keep funding operating expenses as the going-out-of-business sales get underway.
The company has been under new ownership since Bed Bath & Beyond, which also declared bankruptcy earlier this year, sold them in 2020.
According to a court filing, Christmas Tree Shops plans to stop honoring and selling gift cards on July 21, 2023.
Christmas Tree Shops store closings 2023: Full list of remaining stores to close
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