“Christmas Tree Shops to Shutter All 73 Stores Amid Financial Struggles
Facing a dire financial situation, Christmas Tree Shops, the well-known Massachusetts-based retail chain celebrated for its extensive selection of home goods and seasonal decorations, has made the difficult decision to close all 73 of its stores across 20 states. The company’s recent Chapter 11 bankruptcy filing has compelled it to take this drastic action unless a last-minute buyer emerges to rescue the situation.
Christmas Tree Shops, renowned for offering products ranging from outdoor furniture to bedding sets, has been a fixture in the retail industry for years. However, its financial woes have forced the liquidation of its remaining stores, as reported by The Wall Street Journal. According to an official filing with the U.S. Bankruptcy Court in Wilmington, Delaware, the company and its stakeholders have provisionally agreed to initiate the liquidation process for approximately 70 stores unless a potential buyer steps in within the next week.
The downfall of Christmas Tree Shops can be attributed to a combination of factors, including a $45 million loan the company secured. Regrettably, the company’s declining revenues and liquidity problems resulted in a default on the loan’s terms, prompting creditors to terminate the agreement.
Interestingly, Christmas Tree Shops has a noteworthy history in the retail sector. In 2003, Bed Bath & Beyond acquired the chain for $200 million, only to later sell it to Handil Holdings, a private entity, in 2020. However, Bed Bath & Beyond itself faced financial difficulties, leading to its own bankruptcy filing in March.
Notably, Overstock, a prominent online furniture and home retail store, played a significant role during Bed Bath & Beyond’s troubles. The company successfully acquired Bed Bath & Beyond’s intellectual property through a $21.5 million auction and is currently undergoing a rebranding effort. Overstock’s Chief Executive Officer, Jonathan Johnson, has emphasized that the rebranding reflects the company’s new direction, distinct from its previous liquidation-focused model.
Overstock’s transformation is not the only change in the retail landscape. The presence of Christmas Tree Shops across various states is set to disappear.
According to the company’s website, its stores are distributed as follows:”
New Hampshire: 4
New Jersey: 10
New York: 11
North Carolina: 2
Rhode Island: 2
South Carolina: 1
Christmas Tree Shops’ imminent departure from the retail scene further underscores the industry’s ongoing transformations and challenges. As the company’s liquidation proceeds, the impact of these changes will be deeply felt by employees, customers, and the retail landscape as a whole.