After filing for Chapter 11 bankruptcy in May, Christmas Tree Shops will now close all of its stores unless it can find a last minute buyer.
The Massachusetts-based retail chain – which has more than 70 stores across 20 states and sells a variety of products including outdoor furniture, seasonal decor, bedding sets and more – is liquidating its remaining stores because of worsening finances, The Wall Street Journal reported.
According to a filing with the U.S. Bankruptcy Court in Wilmington, Delaware, last week, the company and its stakeholders have “reached an agreement this week to liquidate the remaining roughly 70 stores unless a buyer emerges within the next week or so,” the publication reported.
According to the report, Christmas Tree Shops took out a $45 million loan, but creditors terminated it “after the company defaulted on the terms due to worsening revenues and liquidity.”
Bed Bath & Beyond, which filed for bankruptcy in March, purchased Christmas Tree Shops in 2003 for $200 million and sold the chain to Handil Holdings, a private company, in 2020.
Christmas Tree Shops joins Bed Bath & Beyond in retail stores going out of business
Bed Bath & Beyond filed for bankruptcy protection after years of dismal sales and numerous failed turnaround plans after the company failed to secure funds to stay afloat.
However, Overstock, a popular online furniture and home retail store, won a $21.5 million auction for Bed Bath & Beyond’s intellectual property and is rebranding itself under the name.
“We knew the Overstock name reflected our prior liquidation model and that it did not align with the type of products we now sell,” Chief Executive Officer of Overstock Jonathan Johnson said. “We are not a liquidator and have not been one for 20 years. We offer quality, new, on-trend product at smart value.”
The brand will launch in Canada first, and launch a new website and app in the United States in August and September, Johnson said.
Bed Bath & Beyond:Retailer returns online after Overstock rebranding
Christmas Tree Shops locations
According to its website, Christmas Tree Shops has 73 stores across 20 states. Here’s where and how many stores are in each state.
Contributing: James E. Kukstis, wickedlocal.com; Amritpal Kaur Sandhu-Longoria, USA TODAY
