SHREWSBURY – Christmas Tree Shops is heading for liquidation, according to a report in the Wall Street Journal.
The company filed for Chapter 11 bankruptcy in May.
“The financial restructuring will reduce the company’s debt, better aligning it balance sheet with the current market conditions that have been negatively impacted by slowing consumer demand fueled by inflationary pressures and increased interest rates,” the company wrote in the May 5 press release.
As of that press release, the company planned to emerge from Chapter 11 before the end of August.
According to the Wall Street Journal, Christmas Tree Shops took out a $45 million bankruptcy loan, but that was terminated by creditors after it defaulted on the loan because of worsening conditions.
WSJ noted that the company and its stakeholders reached an agreement to liquidate its remaining stories unless a buyer emerged.
Among the 15 stores in Massachusetts is the location in Olde Shrewsbury Village.
