💲 The chain filed for Chapter 11 bankruptcy in May

💲 10 underperforming stores were closed but none in New Jersey

💲 Liquidation sales could begin Thursday

The entire Christmas Tree Shops chain, including 10 locations in New Jersey, are set to close after the company defaulted on a loan as part of its bankruptcy deal, according to a Wall Street Journal report.

The chain's current owners, Handil Holdings, filed for Chapter 11 bankruptcy in May to restructure its finances in order to better position itself for long-term success and reduce the company's debt.

Christmas Tree Shops in New Jersey
Christmas Tree Shops in New Jersey (Google Street View)

As part of the filing, Handil received a $45 million loan from Eclipse Business Capital SPV LLC and ReStore Capital LLC in order to maintain normal business operations during the Chapter 11 process.

The chain also closed 10 underperforming stores but none were in New Jersey.

The Wall Street Journal, citing documents filed with U.S. Bankruptcy Court for the District of Delaware, reported Monday the company defaulted on the loan because of a decrease in revenues and it was terminated. The store will instead liquidate its 70 remaining stories unless a buyer is found in the next week.

The documents indicated the sale could begin as soon as Thursday.

There was no indication on the store's website about a liquidation sale or the future of the chain.

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