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Christmas Tree Shops has identified a number of locations for closure as part of its Chapter 11 bankruptcy process.
The Massachusetts-based home-goods retailer revealed Friday it would take such action for a maximum of 10 "underperforming" stores. Christmas Tree Shops, which now goes by CTS, reported a footprint that spans 82 stores located in 20 different states, according to the press release announcing the company’s bankruptcy filing.
CTS’ submission of its Chapter 11 petition on Friday came just one day after the Wall Street Journal first reported such a move was coming. It did so in the U.S. Bankruptcy Court for the District of Delaware along with four other entities.
A gavel rests on sounding block next to a brass scale of justice in front of a long row of law books on a desk in a law office. Photographed with a very shallow depth of field. (iStock / iStock)
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For workers impacted by the proposed closures, CTS said "many" will have an opportunity to move to another store "where there is a geographical match," according to the press release.
The company listed two CTS locations in Massachusetts, two in New York, two in Pennsylvania, one in Virginia, one in Michigan, one in Georgia and one in Florida in a motion about the closures submitted to the court.
CTS described the restructuring as strictly financial in nature. The target date for the retailer exiting bankruptcy is "before the end of August," the release said.
CTS chairman Marc Salkovitz said in a statement that operations would carry on "business-as-usual" during the restructuring. He described the Chapter 11 filing as the "best way to address our burdensome liabilities."
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"With the protections afforded by the Bankruptcy Code and the financing provided by our lenders, we will be able to satisfy our ongoing obligations to customers, vendors and employees," he also said. "We are confident we will emerge a stronger business, better positioned to grow and prosper in the future."
Marc Salkovitz helms CTS along with CEO Pam Salkovitz via Handil Holdings, per the retailer’s website. Bed Bath & Beyond sold Christmas Tree Shops, which offers seasonal decorations, furniture and other items, to Handil Holdings in November 2020.
Shoppers enter and exit a Bed Bath & Beyond in Schaumburg, Ill., Jan. 14, 2021. Struggling Bed Bath & Beyond warned on Thursday that there’s substantial doubt about the company’s ability to continue as a “going concern” even as it con (AP Photo/Nam Y. Huh, File / AP Images)
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In the Chapter 11 filing specifically for Christmas Tree Shops, LLC, the company estimated the $50 million to $100 million range for its assets. Estimated liabilities were reported as $100 million to $500 million, according to the document.
The bankruptcy court held a hearing in connection to CTS’ bankruptcy filing earlier Tuesday.