CBSNews.com and other media outlets reported July 3 that store closing sales at the Christmas Tree Shops could begin in the next few days because the struggling retailer has not been able to pay its bankruptcy lenders.
The Christmas Tree Shops, known as CTS, also operates as andThat!, a discount home décor, food, gifts and seasonal products brand that has one store in Jacksonville in the Timberlin Village shopping center at 8801 Southside Blvd.
On July 4, associates at the store did not know if the location would be liquidated and were waiting for more information.
While it’s unclear when they were posted, signs taped on the door and set up at the cash registers say:
“Hello CTS Fans! Don’t worry. We’re staying here for you. Enjoy the treasure hunt! Enjoy CTS-ing.”
Christmas Tree Shops LLC filed for protection under Chapter 11 bankruptcy laws May 5, 2023, in U.S. Bankruptcy Court in the District of Delaware.
CBSNews.com reported that late last week, a judge ordered funding for the “likely liquidation process” unless a buyer can be found for the chain with dozens of stores in 20 states.
ChristmasTreeShops.com says there are 82 stores in 20 states. The five in Florida are in Jacksonville, Altamonte Springs, Estero, Pembroke Pines and Sarasota.
CTS Chairman Marc Salkovitz testified in court that lenders have asked for closing sales to begin July 7 “so that we don’t have to pay September rents because we would be done and out of those stores before the end of August,” the news site said.
According to the CBS report, the Massachusetts-based company said in May that it hoped to “emerge a financially stronger retailer” after the bankruptcy filing.
Sales fell when the Christmas Tree Shops was not able to restock shelves fast enough, a lawyer for the company said in court.
The news site said the chain began on Cape Cod 50 years ago. In 2022, it rebranded as “CTS” because people outside of New England believed they only sold Christmas trees.
Christmas Tree Shops was spun off from Bed Bath & Beyond in 2020, which also is liquidating under bankruptcy protection.
The Jacksonville andThat! is in the same shopping center as Bed Bath & Beyond and is buybuy Baby brand, which also is closing.
The Reuters.com news site said May 5 that CTS said in a statement that its bankruptcy was a “strictly financial restructuring” and that most of its stores would remain open without disruption.
As of May 5, the company had $50 million to $100 million in assets and $100 million to $500 million in debts, according to a Chapter 11 petition filed in Delaware bankruptcy court, Reuters said.
CTS said its debt had become unsustainable due to increased interest rates, inflationary pressures and decreased consumer demand for its home decor and seasonal decoration products.
CTS entered bankruptcy with a $45 million loan from Eclipse Business Capital SPV LLC and ReStore Capital LLC, according to the company.
The company said then it intended to close 10 of its 82 stores during its bankruptcy, seeking to emerge from Chapter 11 by August.
“We are confident we will emerge a stronger business, better positioned to grow and prosper into the future,” Salkovitz said then in a statement.
Handil Holdings, which acquired the company from Bed Bath & Beyond in 2020, also filed for Chapter 11 bankruptcy, Reuters said