PROVIDENCE, R.I. (WPRI) — Christmas Tree Shops is preparing to close all of its remaining stores, 12 News has learned.
Christmas Tree Shops chairman Marc Salkovitz seemed confident that the retailer would emerge from Chapter 11 by the end of August.
“This is strictly a financial restructuring,” Salkovitz said at the time. “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.”
But that no longer appears to be the case.
The Wall Street Journal reported last week that the retailer had taken out a $45 million loan to push through until a buyer came forward. But Christmas Tree Shops ended up defaulting on that loan, prompting creditors to terminate it.
Unless a buyer comes forward within the next few weeks, court filings indicate that the retailer will liquidate and shutter its remaining 72 stores. That includes the two Christmas Tree Shops in Rhode Island and the 15 remaining stores in Massachusetts.
The retailer could begin its “going-out-of-business” sales as early as Thursday.
Before filing for bankruptcy, the retailer had planned on rebranding its stores after discovering that shoppers outside of New England believed they only sold Christmas trees.