Christmas Tree Shops is planning to liquidate and close all of its stores if it can’t find a buyer, according to court documents. The company has retained SSG Capital Advisors to help it find potential investors or buyers for its assets, with an auction tentatively set for July 19, 2023.
SSG sent materials to 350 potential buyers and received interest from 29, including both retailers and private equity firms, with additional companies still involved in the process. However, the firm noted that none of the interested parties were prepared to enter into an agreement to acquire Christmas Tree Shops’ assets on the terms required by its lenders by July 5, nor to provide the non-refundable deposit required by July 6.
Christmas Tree Shops originally sought Chapter 11 protection in early May, with plans to stay in business after closing approximately 10 out of 82 stores. At the time, it had a $45 million loan, including about $20 million in fresh capital, to help it get through the process. The retailer has since acknowledged that it has defaulted on this debtor-in-possession loan and that it would not be able to remedy the situation before June 28.
While Christmas Tree Shops initially seemed more hopeful of survival than former parent company Bed Bath & Beyond, which also entered bankruptcy this year, their initial destinies could be reversed. While the Christmas Tree Shops brand may disappear forever, Bed Bath & Beyond’s intellectual property and digital assets were acquired by Overstock.com, which will rebrand itself and keep the fallen home good retailer’s name alive.