Christmas Tree Shops to Liquidate All of its Stores
Christmas Tree Shops plans to liquidate all of its stores. The retail chain, known for selling home goods like bedding sets, dinnerware and party decorations at a discount, filed for Chapter 11 bankruptcy in May. At the time, the company hoped to close only 10 stores considered to be underperforming and come out of its bankruptcy a stronger, more stable business by the end of August. Last week, however, Christmas Tree Shops decided to default on its loan of $45 million, which was used to keep its retaining 72 stores afloat, due to worsening finances, The Wall Street Journal reported.
Total Retail's Take: Absent a buyer stepping forward in the 11th hour, Christmas Tree Shops will become the latest retail chain to go out of business, joining others such as Bed Bath & Beyond and Tuesday Morning. The business has been challenged by increased competition online in the homewares category. Furthermore, spending on discretionary goods like that which Christmas Tree Shops sells is increasingly being cut by consumers, who are tightening their belts amid higher interest rates and inflationary pricing.