Consumer
Christmas Tree Shops Is Winding Down After Lenders Pull Funding
- The retailer begins closing stores after June sales droop
- Some creditors are preparing for a liquidation, lawyer says
A Christmas Tree Shops store in Waldorf, Maryland.
Photographer: Alex Wong/Getty ImagesThis article is for subscribers only.
Discount retailer Christmas Tree Shops Inc. has begun shutting down its business after dwindling sales prompted lenders to withdraw funding for its Chapter 11 case.
Christmas Tree Shops is negotiating a budget with lenders to continue funding payroll and other operating expenses as it conducts going-out-of-business sales, the company’s lawyer Harold Murphy said during a court hearing Friday. A lawyer representing the retailer’s unsecured creditors said they’re preparing for a liquidation.