Christmas Tree Shops Inc. filed for bankruptcy — less than three years after Bed Bath & Beyond Inc. sold the discount retailer — with plans to shutter some underperforming stores.
(Bloomberg) — Christmas Tree Shops Inc. filed for bankruptcy — less than three years after Bed Bath & Beyond Inc. sold the discount retailer — with plans to shutter some underperforming stores.
The company filed a Chapter 11 petition alongside parent company Handil Holdings in Delaware on Friday, court papers show. Handil listed liabilities of as much as $100 million in its bankruptcy petition.
The firm has received commitments for $45 million in bankruptcy financing from Eclipse Business Capital and ReStore Capital, according to an emailed statement. Christmas Tree Shops will seek approval to close up to 10 stores in bankruptcy, according to the statement.
“After careful consideration we determined that availing ourselves of the Chapter 11 process was the best way to address our burdensome liabilities,” Marc Salkovitz, the company’s chairman, said in the statement. Customers and suppliers shouldn’t expect any disruptions to the business as a result of the bankruptcy, he said.
Massachusetts-based Christmas Tree Shops had been sounding out investors in an attempt to raise more funding as it stared down cash constraints, Bloomberg previously reported. The company pursued a sale and leaseback of its Massachusetts distribution center to help avert a potential cash crunch.
The firm started as a gift shop on Cape Cod, but eventually spread to more than 80 stores across the US and branched out beyond holiday supplies to selling affordable home goods. Bed Bath & Beyond agreed to sell the retailer to Handil in 2020. Pathlight Capital provided a $180 million loan to help fund the deal.
The bankruptcy is Handil, LLC, 23-10574, US Bankruptcy Court for the District of Delaware.
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