PROVIDENCE, R.I. (WPRI) — Christmas Tree Shops has officially filed for bankruptcy.
The retailer, best known for selling a variety of seasonal items and home décor, filed for Chapter 11 bankruptcy Friday in an effort to position itself “for long-term success.”
“This is strictly a financial restructuring,” Christmas Tree Shops chairman Marc Salkovitz said in a statement. “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, Christmas Tree Shops has tremendous potential, and we remain committed to the long-term success of the business,” he added.
Salkovitz said Christmas Tree Shops should complete it financial restructuring and emerge from Chapter 11 by the end of August.
In addition to the filing, Salkovitz said the retailer has received a commitment of up to $45 million in debtor-in-possession financing from two lending companies. The financing will be used to maintain normal operations throughout the Chapter 11 process.
“We are confident we will emerge a stronger business, better positioned to grow and prosper into the future,” Salkovitz said.
Salkovitz expects that it will be “business-as-usual,” though the retailer is seeking to close 10 underperforming stores. It’s unclear which of the retailer’s 80 stores are on the chopping block.
“Our customers will see no disruption in service or product quality, we will continue to honor all gift cards and our suppliers can expect timely payments,” he said.
There are currently two stores located in Rhode Island and 15 in Massachusetts, including the retailer’s flagship store in Holyoke.
The retailer announced it would be rebranding its stores last year after discovering that shoppers outside of New England believed they only sold Christmas trees.
Christmas Tree Shops’ intent to file for bankruptcy was first reported by The Wall Street Journal.
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