US-based chain of big-box speciality retail stores Christmas Tree Shops (CTS) is planning to sell off all their assets in the country, the Wall Street Journal reported.
The retailer reportedly defaulted on a $45m bankruptcy loan.
A court filing shows that CTS will proceed with liquidating all its stores as part of an auctioning process unless it finds a buyer in the next few weeks.
The US Bankruptcy Court for the District of Delaware has set 19 July as the deadline for the auction process and 30 July is the deadline for the winning bidder to close the transaction.
CTS, which is based in Massachusetts, filed a voluntary petition for Chapter 11 of the US Bankruptcy Code in May this year after its financial position deteriorated due to the slowdown in demand, inflation and rising interest rates.
At the time of filing for protection, CTS chairman Marc Salkovitz said: “This is strictly a financial restructuring. Our operations are sound. By increasing our financial flexibility, we will be able to focus on continuing to delight our loyal customers with a wide selection of unique goods at affordable prices.
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“We continue to believe that given its storied history and strong customer loyalty, CTS has tremendous potential and we remain committed to the long-term success of the business.”
At the time of filing for protection, the retailer operated 82 stores in 20 states, offering a variety of home decor goods, including bed, bath and kitchen products, along with furniture and seasonal holiday decorations.