Is Christmas tree shop going out of business? There are currently store-closing sales at ten Christmas Tree Shop locations. Christmas Tree Shops have made the difficult decision to close almost ten stores. Although this decision was not taken lightly, it is the best course of action during restructuring.
On May 5, Christmas Tree Shops filed for Chapter 11 bankruptcy, which does not mean it will go out of business like its retail competitors. The business plans to restructure itself and emerge from bankruptcy by August.
The American chain of specialty retail stores is known as Christmas Tree Shops. The company’s main office is in Middleborough, Massachusetts. In 20 states, Christmas Tree Shops have 82 locations. It is the go-to location for affordable celebrations, home decor, and everyday activities. Shopping enthusiasts seeking fantastic bargains on furniture, kitchenware, food, and personal things love to visit Christmas Tree Shops.
The store sells a lot of seasonal items with holiday themes. But, the name derives from the desire to make consumers feel like “Christmas every day” as they shop there. Let us view the business in detail in this article.
History of the brand
The first Christmas Tree Shops were established by Charles Bilezikian and his wife Doreen in Yarmouth Port, Massachusetts, on Cape Cod, in 1970. Christmas Tree Shops debuted a series of ads in the middle of the 1990s. This included the soon-to-be-famous jingle “Don’t you just love a bargain?” and footage of the chain’s customers displaying products they had bought. It was still going strong in the early 2000s.
Although Bed Bath & Beyond bought the chain in 2003, the Bilezikians continued participating in its administrative operations. Under Bed Bath & Beyond, the business started to branch out outside New England. 2006 it arrived in New Jersey, leading to Bed Bath & Beyond. In 2007, it made its way to Delaware and Pennsylvania. The brand expanded into the Midwest the next year, opening shops in Michigan and Ohio in late 2008.
The original shops on Route 6A were shut down in January 2007, but Greg Bilezikians’ shops have since moved in. The more modern stores have outpaced some of Cape Cod’s older ones, like those in West Dennis.
Christmas Tree Shops adopted a new brand and store format in 2013 to minimize confusion in new areas where the store was unknown. It was started under the moniker Christmas Tree Shops and That! For all new locations opened under Bed Bath & Beyond, the name was condensed to “andThat!” by 2016.
The brand’s logo was changed in 2022 to highlight “CTS” prominently. The phrase “Every Season, Every Reason” was replaced with the well-known jingle “Don’t you just love a bargain?” The chain’s tagline was also updated. In Estero, Pembroke Pines, and Sarasota, Florida, the chain’s first brand-new, permanent locations under Handel began operations in 2022.
Christmas Tree Shops stated on May 4, 2023, that it was preparing to file for Chapter 11 bankruptcy protection. This happened after its former parent business, Bed Bath & Beyond, failed. The chain and its parent firm, Handel Holdings, filed for Chapter 11 bankruptcy the following day, on May 5. Ten locations with poor performances are expected to close. This enables the business to restructure operations and come out of bankruptcy by August.
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CTS filed Filed Bankruptcy
As we know, CTS is well known for retailing seasonal products and home decor. The business filed for Chapter 11 bankruptcy to position itself “for long-term success.”
Unfortunately, Bed, Bath & Beyond Inc.’s financial problems extend beyond just those businesses. Christmas Tree Shops has also declared bankruptcy under Chapter 11. They made the news just one year after announcing that they would rename their outlets as CTS.
Marc Salkovitz, the chairman of Christmas Tree Shops, stated in a statement,
“This is entirely a financial restructuring.” “Our procedures are reliable. By enhancing our financial flexibility, we can concentrate on keeping our loyal clients happy with a wide assortment of unique products at competitive costs.”
He continued, “We are dedicated to the long-term development of the business. Also, we continue to feel that, given its illustrious history and high customer loyalty, Christmas Tree Shops have immense potential.”
By the end of August, Christmas Tree Shops should have finished its financial restructuring and emerged from Chapter 11. Besides the lawsuit, Salkovitz claimed that the shop had a promise for debtor-in-possession financing from two lending firms worth up to $45 million. Throughout the Chapter 11 process, the financing will keep things as they are.
Salkovitz declared, “We are certain we will emerge a stronger company, better positioned to thrive and prosper into the future.”
Salkovitz anticipates “business as usual,” even though the retailer wants to eliminate ten failing locations. It’s initially unclear which of the 80 locations the firm owns will close.
“We will honor all gift cards; our clients won’t notice any service or product quality changes. Also, our suppliers can count on prompt payments,” he added.
Currently, Massachusetts has 15 stores. This includes the retailer’s main location in Holyoke, while Rhode Island has two stores. The retailer declared in 2022 that it would be rebranding its outlets. It was after learning that customers outside of New England thought the firm only sold Christmas trees.
The Wall Street Journal was the first publication to report on Christmas Tree Shops’ intention to declare bankruptcy. Representatives of the chain stated that no additional layoffs are planned and that many employees of the closed stores will be offered jobs at other locations.
Store closing list
Ten Christmas Tree Shop Stores have started holding store-closing sales. Christmas Tree Shops has over 80 locations spread over 20 states but intends to close 10 in just seven states. According to bankruptcy filings, the following locations will close:
- 11470 Pines Blvd., Pembroke Pines, Florida
- 845 Ernest W. Barrett Pkwy. NW, Kennesaw, Georgia
- 28 Davis Straits, Falmouth, Massachusetts
- 5 Cranberry Highway, Sagamore, Massachusetts
- 4071 Miller Road, Flint, Michigan
- 32 Spring Valley Marketplace, Spring Valley, New York
- 21182 Salmon Run Mall Loop West, Watertown, New York
- 955 East Lancaster Ave., Downington, Pennsylvania
- 2350 Lincoln Highway East, Lancaster, Pennsylvania
- 2700 Potomac Mills Circle, Potomac Mills, Virginia
Christmas Tree Shops did not immediately answer Nexstar’s request for more information. Thus, it is unclear when these stores will permanently close. The 1950-founded firm received a rebranding last year. It was once owned by the now-closing Bed Bath & Beyond.
Additionally, it is not the only retailer to declare bankruptcy recently. Discount retailer Tuesday Morning announced that all its locations would close in early May. The business revealed itself after voluntarily seeking protection under Chapter 11 of the U.S. Bankruptcy Code. Party City, a retailer of party supplies, and David’s Bridal are two more companies declaring bankruptcy.
The most notable example is Bed Bath & Beyond, which declared bankruptcy and started its liquidation sale. By the summer, the business intends to close every one of its stores.
Shoppers can enjoy reductions of up to 30% off the lowest ticketed prices throughout the store during the closing deals. These shops provide a vast assortment of furniture, presents, household goods, and more. It includes well-known brands, now at much lower costs.
Some fixtures, furniture, and equipment will also be for sale in the closing locations. At the closing sites, every sale is final. As a result, the discount chain will close ten stores nationwide as part of a restructuring strategy.
Will Amherst’s Christmas Tree Shops Close?
Many residents of Western New York have gone on a shopping binge due to the closing of many nearby Bed, Bath, and Beyond stores. They are using up their remaining coupons in the weeks following the announcement. They peruse the shelves for bargains as the chain starts to clear its inventory.
However, Bed Bath & Beyond Inc.’s bankruptcy filing impacts more than just the customers and staff of those locations. Christmas Tree Shops swiftly expanded throughout the East and Midwest when the brand was purchased by Bed, Bath & Beyond Inc. in 2003.
What will happen to our local store now that their parent business shuts down nationwide locations?
Predicting what will ultimately happen to the Christmas Tree Shops location on The Boulevard is difficult. However, the Amherst store should remain open for now, as CTS only specified two New York State locations in their memo. They are Watertown and Spring Valley.
Do Christmas tree shops need to be saved?
Early in May, Christmas Tree Shops filed for bankruptcy to close 10 of its 82 locations, pay down debt, and reorganize quickly. But the filing caused some uncertainty regarding the future of the New England home decor retailer.
Weaker sales were attributed to slowing consumer demand brought on by inflationary pressures and higher borrowing rates. Due to the home category’s slowing down after a pandemic rise, Bed, Bath & Beyond and Tuesday Morning have also just entered bankruptcy court.
In the 1950s, a little Christmas knick-knack store on Cape Cod served as the forerunner of Christmas Tree Shops. Later, with the slogan “Don’t you just love a bargain?” it grew into a sizable discounter of household products and year-round commodities.
Before selling the brand to Pam and Marc Salkovitz in 2020, Bed Bath & Beyond, which had acquired the chain in 2003, had grown it from 23 to more than 80 sites.
Most people purchase from businesses for their treasure-hunt deals. It’s despite their distinctive architecture, with many of them evoking Colonial, Victorian, or even Old English barn styles.
One customer told Boston.com, “We could always count on finding wonderful treasures there over the years. This includes wool area rugs with New England themes, lamps, blue and white Chinese export decor, stationary, great window treatments, etc.”
Another person remarked, “I could go on about spending hours in a store just picking up a few items and coming out with plenty of bags for great finds.”
The Salkovitz family changed the name of Christmas Tree Shops to CTS last year. It’s because many people outside of New England believed it only sold Christmas trees. The new owners have also invested in IT, customer loyalty programs, and inventory management.
Christmas Tree Shops still have a lot of potential because of their legendary past and dedicated clientele, Mr. Salkovitz added.
Conclusion
72 Christmas Tree Shop locations will remain open and available to assist us. We can do anything here for less, whether entertaining for the holidays, redecorating our first house, throwing a party, or stocking up on our favorite snacks. It’s time for CTS!
Customers at the ten stores listed on the chopping block should act quickly. They have already started liquidating their stock and will be shut down entirely sometime in July. Don’t throw away those unused CTS gift cards!