Liquidation sales with up to 90% off in final days of popular discount retailer which is closing 72

June 2024 · 2 minute read

BUDGET home goods retailer Christmas Tree Shops is set to close all stores across the county this week.

The move comes just three months after CTS was forced to file for Chapter 11 bankruptcy.

As a result of the imminent closure, the retailers have launched a huge liquidation sale with prices discounted up to 90 percent until the stores close on August 12.

According to the CTS website, stores will no longer take gift cards, merchandise credits, or store credits.

"Everything must be sold! Come and see... fresh finds await in-store" the website told shoppers.

Every department and all items are heavily discounted with even a number of store fixtures, displays, and stockroom equipment for sale.

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CTS headed into liquidation after the bankrupt retailer failed to pay off its loan.

The company initially filed for Chapter 11 bankruptcy in May but struggled to keep up with the restructured loans.

Notices filed with the U.S. Bankruptcy Court in Wilmington, Delaware, showed the company failed to pay off bankruptcy loans, The Wall Street Journal reported.

"Unfortunately, circumstances have resulted in the plan really not being able to go forward because quite simply, the debtor doesn’t have the time nor the money to go forward with the plan," the company's lawyer, Harold Murphy, said in the bankruptcy court hearing.

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In order to arrange its finances to reduce the company's debt, CTS closed 10 stores but the impact of this measure was entirely written off when the owner of the retailer Handil Holdings defaulted on a $45million loan to support the company during the bankruptcy process.

As a result all 70 stores across 20 states will be closing this weekend.

The home goods retailer was a decorating mainstay in the northeast corridor of the US throughout the 1990s and early 2000s.

The company has changed ownership hands several times throughout its history.

Bed Bath and Beyond purchased the retailer in 2003 for $200million.

CTS changed hands again following a sale to Handhil Holdings LLC in 2020 for an undisclosed amount.

It now joins a list of home goods stores entering bankruptcy and liquidation sales including its former owner Bed Bath and Beyond.

However, Bed Bath and Beyond's online brand will remain open after Overstock.com purchased the naming rights to the company.

Meanwhile, Tuesday Morning is working toward closing all 265 locations this year.

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