Christmas Tree Shops faces closure of Shrewsbury store due to financial challenges

Massachusetts-based retail chain Christmas Tree Shops (CTS), with over 70 stores across 20 states, is on the verge of closing all its stores due to deteriorating finances unless a last-minute buyer emerges. The decision to close comes after the company filed for Chapter 11 bankruptcy in May, as reported by The Wall Street Journal.

According to a recent filing with the U.S. Bankruptcy Court in Wilmington, Delaware, the company and its stakeholders have agreed to liquidate the remaining approximately 70 stores if a buyer does not surface within the next week or so.

Financial difficulties have plagued Christmas Tree Shops, resulting in the termination of a $45 million loan due to worsening revenues and liquidity, as cited by creditors.

In a press release issued on May 5, 2023, Christmas Tree Shops announced its voluntary petition for Chapter 11 bankruptcy, aiming to fortify the company and position it for long-term success. The statement stressed the intention to reduce debt and realign the balance sheet with current market conditions affected by inflationary pressures and increased interest rates. The company remains committed to delivering a diverse range of unique goods at affordable prices to its loyal customers.

“This is strictly a financial restructuring. Our operations are sound. By increasing our financial flexibility, we will be able to focus on continuing to delight our loyal customers with a wide selection of unique goods at affordable prices. We continue to believe that given its storied history and strong customer loyalty, CTS has tremendous potential, and we remain committed to the long-term success of the business,” CTS Chairman Marc Salkovitz affirmed in the May 5 press release.

One of the affected stores is the Shrewsbury location, situated in Olde Shrewsbury Village at 1000 Boston Turnpike. In conversation with employees at the Shrewsbury store on July 5, 2023, it was revealed that they did not have any official information at the time and were expecting to receive further updates tomorrow.