May 5 (Reuters) – Christmas Tree Shops, a home accessories retailer spun off from Bed Bath & Beyond in 2020, filed for bankruptcy on Friday.
Christmas Tree Shops (CTS) said in a statement that its bankruptcy was a “solely financial restructuring” and that most of its stores would remain open without interruption.
The Middleborough, Massachusetts-based company has assets ranging from $50 million to $100 million and debts ranging from $100 million to $500 million, according to a Chapter 11 filing in Delaware bankruptcy court.
CTS said its debt has become unsustainable due to higher interest rates, inflationary pressures and reduced consumer demand for home decoration and seasonal decoration products.
CTS filed for bankruptcy on a $45 million loan from Eclipse Business Capital SPV LLC and ReStore Capital LLC, according to the company.
The company plans to close 10 of its 82 stores during its bankruptcy in order to get out of Chapter 11 by August.
“We are confident that we will emerge from a stronger company that is better positioned to grow and thrive in the future,” said Marc Salkovitz, chairman of CTS, in a statement.
Handil Holdings, which acquired the company from Bed Bath & Beyond in 2020, also filed for Chapter 11 bankruptcy. According to CTS, since the acquisition, Handil has taken steps to improve operational efficiencies, inventory management, IT and other aspects of the business. (Reporting by Dietrich Knauth; Editing by Jonathan Oatis)