Christmas Tree Shops is looking at liquidation less than two months after parent company Handil Holdings filed for Chapter 11 bankruptcy protection.
Although it tried to reorganize, closing 10 of its 83 locations in the process, the company could not gain traction. According to a filing with the United States Bankruptcy Court of Delaware, Christmas Tree Shops failed to live up to conditions of its debtor-in-possession financing. Unless some new circumstance arises, Christmas Tree Shops final store closings will begin July 6.
Hilco Merchant Resources would conduct the store closing sales, the filing noted. The same company conducted the earlier store closing sales.
When it filed for bankruptcy protection in May, Handil stated its financial restructuring under Chapter 11 protection would reduce the company debt and better align the balance sheet with market conditions that have been hit by slowing consumer demand due to inflationary pressures and increased interest rates. Handil asserted then it had made operational improvements to the business, including bringing in experts to improve operational efficiencies and inventory management, creating a new stand-alone modern IT environment, attracting talent to build independent HR and finance departments, developed and implemented a new store prototype, and introduced a customer loyalty program. The company hoped to complete its financial restructuring and emerge from Chapter 11 before the end of August, it maintained in the bankruptcy filing.
Bed Bath & Beyond sold Christmas Tree Shops to Handil in the fall of 2020 as it tried to boost its own turnaround effort and well before the company itself began a liquidation process this year.
