An iconic American store once owned by bankrupt retail giant Bed, Bath & Beyond is said to be preparing to file for bankruptcy of its own.
Christmas Tree Shops, a legendary New England retailer with stores across the US, is said to be in jeopardy as lawyers prepare documents amid the reported insolvency.
The store — which was forced to rebrand to CTS last year because some customers assumed they only sold Christmas trees — has 83 locations across the country, according to its website.
For more than five decades, the bargain shop has been selling household goods, foodstuffs, toys and the Christmas decorations of the same name.
But now the New England firm, like the old owner, risks closing its doors to customers for good.
Christmas Tree Shops is said to be in jeopardy as lawyers prepare documents amid the reported insolvency. One of 83 stores in Buffalo, New York, is pictured
Bed, Bath & Beyond acquired Christmas Tree Shops in 2003 before selling 80 stores to the private company Handil Holdings. Pictured is a Bed, Bath & Beyond store in New York
The Wall Street Journal claimed that “people familiar with the matter” said the store was preparing their bankruptcy filing, which could be processed as early as this weekend.
The newspaper also said that Christmas Tree Stores had instructed lawyers from Boston law firm Murphy & King.
The news comes just a year after the company’s CEO announced plans to open 15 new stores in the US after rebranding to CTS.
But the legal filings may not see the retailer’s complete shutdown.
“Chapter 11 is not the end of the road. It really is a way for companies to restructure,” said Ken Morris of Cambridge Retail Advisors CBS. He said some stores will probably have to close, but the better-performing flagship stores may be able to keep their doors open.
Retail experts also stressed to consumers that they should use any gift cards they have before any further developments in the process.
Husband and wife duo Charles and Doreen Bilezikian started the company in 1970 on Cape Cod. It expanded across the Northwestern states to Michigan, Indiana, Kentucky, and Ohio in the 1980s before opening in locations across the rest of the country.
Bed, Bath & Beyond then acquired the company in 2003 before selling 80 stores to the private company Handil Holdings.
Husband and wife duo Charles and Doreen Bilezikian started Christmas Tree Stores in 1970. A store in Sagamore, MA is pictured
This comes after the previous owners of Christmas Tree Shops, Bed, Bath & Beyond, filed for bankruptcy last month.
The furniture giant filed for Chapter 11 bankruptcy protection in late April after failing to secure funds to stay afloat, announcing that all 360 stores nationwide will eventually close, putting 30,000 jobs at risk.
The home goods retailer has filed for bankruptcy in a New Jersey County court, listing both its estimated assets and liabilities as between $1 billion and $10 billion, according to the court.
Bed, Bath & Beyond stores will remain open for now, but a liquidation process has begun that will eventually close all 360 stores.
The company said it received a commitment of approximately $240 million in debtor-in-possession financing from Sixth Street Specialty Lending Inc, according to a separate statement.
The store has since moved to “slash” pricing to clear some of its defunct inventory.
Following the April filing, Sue Gove, president and CEO of Bed Bath & Beyond Inc., said, “Millions of customers have trusted us through the most important milestones of their lives – from going to college to getting married, settling into a new home to a having a baby.
“Our teams have worked incredibly purposefully to support and enhance our beloved banners, Bed Bath & Beyond and buybuy BABY.
“We have a deep appreciation for our employees, customers, partners and the communities we serve, and we remain committed to serving them throughout this process.
“We will continue to work diligently to maximize value for the benefit of all stakeholders.”
Bed, Bath & Beyond previously warned of possible bankruptcy in early January when it issued a going concern message that it may not be able to cover its costs after a difficult holiday season.