Reports: Christmas Tree Shops store in Johnson City among 70 nationwide facing closure
A popular home decor, furniture and gift shop in Johnson City is likely on the chopping block, with dozens of store employees waiting to learn of the finalized plans by the end of the week.
Massachusetts-based Christmas Tree Shops, which filed for Chapter 11 bankruptcy in May, faces a "likely liquidation process" for all its stores, CBS News Boston reported, provided no buyer emerges in two days.
The outlet said bankruptcy lenders want closing sales to begin on July 7.
The Johnson City store located at 420 Harry L. Drive is open seven days a week and employs about 50 people, according to a store worker. Employees said they expect to get more information on Friday about the timing of a liquidation sale and eventual closure.
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Christmas Tree Shops operated 82 stores in 20 states when it filed for Chapter 11 in United States Bankruptcy Court for the District of Delaware. Company officials indicated at that time plans to close up to ten “under performing stores" in New York, Pennsylvania, Massachusetts, Florida, Georgia, Michigan and Virginia.
CNN reported Wednesday that Christmas Tree Shops defaulted on a $45 million loan, which will result in closing its roughly 70 remaining stores in the coming weeks.
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.
Christmas Tree Shops highlight their "ever-changing assortment of merchandise" which includes pet supplies, food and drinks, paper and party goods, in addition to its seasonal and holiday decor and one-of-a-kind items.
Christmas Tree Shops began as a holiday boutique in Cape Cod in the 1950s. Bed Bath & Beyond, which had owned the chain since 2003, sold it to Handil Holdings, LLC, in 2020.
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Handil Holdings said it made a "series of operational improvements" to the business, including bringing in experts to upgrade operational efficiencies and inventory management; creating a new stand-alone modern IT environment; attracting top talent to build independent HR and finance departments; developed and implemented new store prototype; and, introduced a customer loyalty program.
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This article originally appeared on Binghamton Press & Sun-Bulletin: Johnson City Christmas Tree Shops store, 70 others face closing doors
