Christmas Tree Shops plans to stop honoring gift cards
Massachusetts-based Christmas Tree Shops, which filed for Chapter 11 bankruptcy in May, is giving customers two weeks to use remaining gift cards. A document filed with the United States Bankruptcy Court for the District of Delaware says the chain “will stop selling and honoring gift cards on July 21, 2023.” The troubled business plans to notify customers of the deadline starting Friday through signage inside stores and a notice on the company’s website. In addition, the company hired to manage the liquidation of all remaining Christmas tree stores announced Friday that going-out-of-business sales had begun nationwide. They said the sale will offer discounts of up to 50% off the lowest ticket prices on merchandise, and that new merchandise will be arriving at locations during the sale. At least one objection to the plan was submitted. Trustees of the Lynnfield Plaza Realty Trust told the court they did not want any liquidation sales to be allowed until the Christmas Tree Shops paid rent due July 1[ads1]. It is unclear whether this rent was paid after the document was submitted to the court. At a hearing Friday morning in federal bankruptcy court in Delaware, the company was given a few more days to find additional investors in a last-ditch effort to save the business. They have until 1pm on Wednesday, when the case is scheduled to go to court. Also this week, The Wall Street Journal reported that the business took out a $45 million bankruptcy loan, but creditors terminated the loan after it defaulted on the terms as liquidity and earnings deteriorated. The company’s early roots date back to the 1950s as a Christmas gift shop on Cape Cod known as “The Christmas Tree Gift Shop,” according to Good Housekeeping. Unlike most holiday shops, Mark and Alice Matthews ran their Yarmouth Port shop from May to October – when holidaymakers flock to the Cape. Christmas Tree Shops had its true beginnings in 1970, when Chuck and Doreen Bilezikian bought the business and moved their family into the apartment above it. The Bilezikians eventually decided to expand the store beyond Christmas decorations and gifts and began stocking summer holiday items such as beach towels and sunscreen. Video below: Customers react to bankruptcy news The official name of the store chain is plural because the original location was composed of a trio of buildings: Front Shop, Back Shop and Barn Shop, with the latter primarily selling penny candy. Most Christmas Tree Shops in New England are in buildings that resemble Colonial, Victorian, or even Old English barn styles. Other locations have distinct features, such as the Lynnfield store’s lighthouse and the windmill at the Sagamore store.
Massachusetts-based Christmas Tree Shops, which filed for Chapter 11 bankruptcy in May, is giving customers two weeks to use remaining gift cards.
A document filed with the United States Bankruptcy Court for the District of Delaware says the chain “will stop selling and honoring gift cards on July 21, 2023.” The troubled business plans to notify customers of the deadline starting Friday through signage inside stores and a notice on the company’s website.
In addition, the company hired to manage the liquidation of all remaining Christmas tree stores announced Friday that going-out-of-business sales had begun nationwide. They said the sale will offer discounts of up to 50% off the lowest ticket prices on merchandise, and that new merchandise will be arriving at locations during the sale.
At least one objection to the plan was submitted. Trustees of the Lynnfield Plaza Realty Trust told the court they did not want any liquidation sales to be allowed until the Christmas Tree Shops paid rent due July 1. It is unclear whether this rent was paid after the document was submitted to the court.
At a hearing Friday morning in federal bankruptcy court in Delaware, the company was given a few more days to find additional investors in a last-ditch effort to save the business. They have until 1pm on Wednesday, when the case is scheduled to go to court.
Also this week, The Wall Street Journal reported that the business took out a $45 million bankruptcy loan, but creditors terminated the loan after it defaulted on the terms as liquidity and earnings deteriorated.
The company’s early roots date back to the 1950s as a Christmas gift shop on Cape Cod known as “The Christmas Tree Gift Shop,” according to Good Housekeeping. Unlike most holiday shops, Mark and Alice Matthews ran their Yarmouth Port shop from May to October – when holidaymakers flock to the Cape.
Christmas Tree Shops had its true beginning in 1970, when Chuck and Doreen Bilezikian bought the business and moved their family into the apartment above it. The Bilezikians eventually decided to expand the store beyond Christmas decorations and gifts and began stocking summer holiday items such as beach towels and sunscreen.
Video below: Customers react to bankruptcy news
The official name of the retail chain is plural because the original location consisted of a trio of buildings: the Front Shop, the Back Shop, and the Barn Shop, with the latter primarily selling penny candy.
Most Christmas Tree Shops in New England are in buildings that resemble Colonial, Victorian, or even Old English barn styles. Other locations have distinct features, such as the Lynnfield store’s lighthouse and the windmill at the Sagamore store.
