Christmas Tree Shops is liquidating its 72 remaining stores after failing to find a buyer in time to satisfy its lenders.
In court filings last week, the retailer said it defaulted on its $45 million bankruptcy loan and that access to funding would be cut off on June 28. Lenders said they would provide limited financing if the business was able to enter into an asset purchase agreement by Wednesday and secure a $5 million deposit by Thursday, but Christmas Tree Shops already believed it would not be able to secure a buyer by that deadline.
Now, going out of business sales have begun at the retailer’s stores nationwide, according to a press release from Hilco Merchant Resources, which is running the liquidation. Stores will offer discounts of up to 50% off the lowest ticketed price for the retailer’s selection of furniture, seasonal decor, housewares and other items.
When Christmas Tree Shops filed for bankruptcy in May, the retailer planned to reorganize its business and close about 10 stores. Defaulting on its bankruptcy loan, however, threatened the retailer’s access to capital. While a sale process was ongoing, with SSG Capital Advisors contacting 350 possible acquirers and entering non-disclosure agreements with 29, the firm said none of the interested parties were likely to meet the Wednesday deadline for an asset purchase agreement.
As a result, the 1950s-era business, once owned by fellow bankrupt retailer Bed Bath & Beyond, will now wind down its stores.
