Topline
Home goods retailer Christmas Tree Shops filed for Chapter 11 bankruptcy Friday as part of a restructuring plan, making it the latest retailer to file for bankruptcy, though company officials said the decision will not result in mass layoffs.
Christmas Tree Shops became the latest retailer to file for bankruptcy this spring.
Key Facts
Christmas Tree Shops, along with its parent company Handil Holdings LLC, filed for a Chapter 11 petition in Delaware bankruptcy court Friday, claiming in a statement the decision marks a “strictly financial restructuring.”
The company attributed the bankruptcy to high inflation, recent interest rate hikes and dropping consumer demand for home goods and seasonal decoration, (Forbes has reached out to the company for comment).
Most Christmas Tree Shops locations will remain open, with 10 of its stores set to close, the company announced.
Its bankruptcy filing is the latest in a series of big box retailers to file for bankruptcy, following David’s Bridal and Bed Bath & Beyond, which sold Christmas Tree Shops to Handil Holdings LLC in 2020, 17 years after it purchased the retailer for $200 million.
Big Number
82. That’s the number of Christmas Tree Shops locations in the U.S., including 15 in Massachusetts, where the company opened its first store in 1950 as a seasonal gift shop on Cape Cod, open between May and October. The company also has 14 locations in New York, 10 in New Jersey, seven in Pennsylvania and five in Florida.
What To Watch For
Potential mass layoffs. The Massachusetts-based company, which has 5,700 employees nationwide, according to PitchBook, has not filed a Worker Adjustment and Retraining Act (WARN) notice in the state. By comparison, Bed Bath & Beyond, which had been struggling for years as it looked to raise money or find a buyer, announced it would close its remaining 360 locations, and had laid off roughly 1,300 employees weeks earlier. David’s Bridal, which filed for Chapter 11 bankruptcy last month, announced plans to cut more than 9,200 positions.
Further Reading
David’s Bridal Files For Chapter 11 Bankruptcy (Forbes)
Bed Bath & Beyond Files For Bankruptcy And Plans To Close Its Retail Stores (Forbes)
Source: https://www.forbes.com/sites/brianbushard/2023/05/05/christmas-tree-shops-files-for-bankruptcy-latest-retailer-to-seek-financial-help/