Have a Christmas Tree Shops gift card to spend? Time is running short

WARWICK − If you have a Christmas Tree Shops gift card, you have less than two weeks to spend it.

The Massachusetts-based retailer announced on its website, and in court filings, that it will stop honoring gift cards on July 21, 2023.

The two Christmas Tree Shops in Rhode Island, in Warwick and Middletown, will eventually close, as will the location in North Attleboro.

Christmas Tree Shops liquidation sales have begun

The home goods retailer, which announced this past week that it planned to liquidate its 70 or so remaining stores, filed a document Thursday with the U.S. Bankruptcy Court for the District of Delaware stating that the chain "will cease selling and honoring gift cards on July 21, 2023."

According to Christmas Tree Shops' website, the liquidation sale will eventually offer discounts of up to 50% off on items in stores and that "new merchandise" would be arriving during the sales. A Court order allowed the liquidation sales to begin on July 6.

Going out of business: 2 RI Christmas Tree Shops to close in company's bankruptcy proceedings

Warwick Christmas Tree Shops store is mostly 10 percent off,

At the store on Tuesday morning, many shelves were bare, a long line of people were waiting to pay and discounts were 10% for nearly all merchandise.

There is no set closure date for the store and new merchandise is supposed to be coming in, according to the company's website.

Christmas Tree Shops began notifying customers of the deadline through signage at its stores and a notice on the company's website on Friday, July 7.

The liquidation sales and closure of all Christmas Tree Shops in the country was outlined in proposed orders filed in federal Bankruptcy Court in Delaware on June 29.

Layoff notice for RI Christmas Tree Shops employees not yet posted

As of July 5, Christmas Tree Shops appears to not have notified the state of any plans for mass layoffs. Companies that employ over 100 people are required by federal law to report facility closures where 50 or more people work or layoffs of 50 or more.

Original bankruptcy plan has some stores staying open

The original plan for Christmas Tree Shops was not to close after it initially filed for bankruptcy in May. On June 5, the Bankruptcy Court authorized DIP Financing (Debtor in Possession) that allowed Christmas Tree Shops to refinance its debt in order to pay employees and restructure the company. Since then, the company has not been able to meet the obligations of that loan.

During a court hearing on June 29, Christmas Tree Shops attorney Harold Murphy said the retailer started running into new problems in early June, when it was unable to quickly refill its shelves as sales outstripped projections.

Murphy described the shopping style of the stores as a treasure hunt that leads to impulse purchases, but when merchandise did not come in to refill the shelves, the impulse buying stopped.

Christmas Tree Shops has total assets worth $49.6 million and $16 million in liabilities, according to a monthly operating report submitted to the bankruptcy court.

The stores, which are known for their Colonial, Victorian and Old English barn architecture, sell a variety of products, from outdoor furniture and rugs to seasonal décor and gift wrap to grocery items and toys.

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Reach reporter Wheeler Cowperthwaite at wcowperthwaite@providencejournal.com or follow him on Twitter @WheelerReporter.

This article originally appeared on MetroWest Daily News: Christmas Tree Shops will stop honoring gift cards on July 21