Christmas Tree Shops has filed for Chapter 11 bankruptcy and will close 10 of its stores, including one in central Pennsylvania.
The store at 2350 Lincoln Highway East Suite 200 in Lancaster County’s East Lampeter Township will close. The closing sale will end by June 30.
The other nine stores closing are located at:
- Davis Straits, Route 28 Falmouth Plaza, Falmouth, Mass.
- Cranberry Highway Route 6A, Sagamore, Mass.
- 32 Spring Valley Marketplace, Spring Valley, NY
- 955 E. Lancaster Ave., East Callan Township, Chester County, Pa. near Downingtown.
- 2700 Potomac Mills Circle, Unit 104, Woodbridge, Va.
- 4071 Miller Road, Flint, Mich.
- 21182 Salmon Run Mall Loop West, Watertown, NY
- 845 Ernest W. Barrett Pkwy NW, Kennesaw, Georgia
- 11470 Pines Blvd, Pembroke Pines, Fla.
The retailer said the financial restructuring will reduce the company’s debt, better aligning its balance sheet with current market conditions, which have been negatively impacted by inflationary pressures and slowing consumer demand from rising interest rates. .
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The current owner Handel Holdings acquired the company in 2020.
“After careful consideration we determined that taking advantage of the Chapter 11 process was the best way to address our onerous liabilities,” Mark Sulkowitz, president of Christmas Tree Shops, said in a news release. “This is strictly a financial restructuring. Our operations are sound. By increasing our financial flexibility, we will be able to focus on delighting our loyal customers with a wide selection of unique goods at affordable prices. We believe that given its history and strong customer loyalty, CTS has tremendous potential, and we remain committed to the long-term success of the business.”
The company expects to complete its financial restructuring and emerge from Chapter 11 before the end of August.
The Christmas tree shops said many employees from the 10 stores that are closing will be offered positions at other locations where there will be a geographic match. The retailer said no further layoffs are being considered at this time.
“It will be business as usual while we work to complete our financial restructuring,” Sulkowitz said. “Our customers will not see any disruption to service or product quality, we will continue to honor all gift cards and our suppliers can expect timely payments.”
Christmas Tree Shops operates 82 stores in 20 states, including one store in Swatara Township. The retailer sells holiday and seasonal items, decor, home decor, kitchen and dining items, furniture, pet items, pool items, and garden and outdoor goods, among other products.
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