Christmas Tree Shops Is Closing All of Its Stores—And Your Gift Cards Expire This Month
The retailer has already started going-out-of-business sales across the U.S.
Over the last few years, the retail apocalypse has claimed many victims. Just this year, we've already said goodbye to two beloved stores: Both Bed Bath & Beyond and Tuesday Morning announced they would be going out of business in April, and have since been busy shuttering hundreds of remaining stores. Now, another well-known company is following suit. Christmas Tree Shops recently confirmed that it would also be closing all of its stores soon. Read on to find out more about these closures—and when your gift cards will expire.
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Christmas Tree Shops recently filed for bankruptcy.
The month after Bed Bath & Beyond's bankruptcy filing, Christmas Tree Shops filed for Chapter 11 bankruptcy in the U.S. District Court of Delaware on May 5. At the time, the discount home-goods retailer was planning to emerge from bankruptcy by August, and only close around 10 underperforming locations, The Wall Street Journal reported.
"This is strictly a financial restructuring," Marc Salkovitz, Christmas Tree Shops' co-owner and company chairman, told the newspaper. "Our operations are sound."
Salkovitz acquired the retail chain from the soon-to-be-defunct Bed Bath & Beyond back in 2020 with his wife, Pam. According to the chairman, one of the main factors in the need for bankruptcy filing was rising consumer prices that negatively impacted Christmas Tree Shops' core customers.
"When the Ukraine war hit, the inflationary pressures had a massive impact on our consumer," Salkovitz told the WSJ.
Now, it doesn't look like Christmas Tree Shops will be making a comeback.
The retailer is now planning to close all of its stores.
As part of its filing, Christmas Tree Shops took out a $45 million bankruptcy loan that included roughly $20 million in fresh capital from its lenders, the WSJ reported. But the loan was recently terminated because the retailer had breached terms amid decreasing sales, according to a June 29 notice filed with the U.S. Bankruptcy Court in Delaware.
Now, the retailer has reached an agreement with its stakeholders to close and liquidate all of its remaining stores, according to the WSJ.
"Unfortunately, circumstances have resulted in the plan really not being able to go forward because quite simply, the debtor doesn't have the time nor the money to go forward with the plan," Harold Murphy, a lawyer for Christmas Tree Shops, said during a June 29 court hearing.
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Going-out-of-business sales are being held at all Christmas Tree Shops stores.
The closure process is already underway, according to Hilco Merchant Resources, LLC, which has been hired to manage Christmas Tree Shops' liquidation. In a July 7 press release, the business management company announced that closing sales have started at the retailer's 72 remaining locations across 20 states.
"At the Going Out of Business sales, shoppers can take advantage of discounts up to 50 percent off the lowest ticketed prices throughout the store, with all Christmas and other holiday items being 50 percent off the lowest ticketed prices," Hilco Merchant Resources stated.
According to the release, home decor, furniture, and gifts, as well as select fixtures, furnishings, and equipment, will also be available for sale at closing Christmas Tree Shops stores during the liquidation event.
"New merchandise will be arriving throughout the sale," the company added.
Your gift cards will expire this month.
You'll want to be careful with your purchases right now, as all sales are final during the going-out-of-business process, according to the Hilco Merchant Resources release.
But if you still have a Christmas Tree Shops gift card, you'll also need to act quickly, as it could go to waste if you don't buy anything in the coming weeks. A July 6 court document revealed that the chain will be terminating its Gift Card program before the month ends.
Christmas Tree Shops stores "will cease selling and honor gift cards on July 21," the document states. The chain is also expected to post notices reminding customers about the deadline to use gift cards both in-store and online.
