And yet another retailer files for bankruptcy. Christmas Tree Shops did so on Friday, filing for Chapter 11 protection. Coming on top of Bed, Bath & Beyond, it’s a troubling trend for the toy and Christmas Decor industries.
Unlike Bed Bath & Beyond, they will continue to operate. According to Forbes, there will be no layoffs and minimal store closings (10 out of 82 locations).
Forbes author Brian Bushard, in his article,
The company attributed the bankruptcy to high inflation, recent interest rate hikes and dropping consumer demand for home goods and seasonal decoration“Christmas Tree Shops Files For Bankruptcy—Latest Retailer To Seek Financial Help,” Brian Bushard, Forbes, may 5, 2023
First, Bed Bath & Beyond (the former owner of Christmas Tree Shops) goes bankrupt, and then Christmas Tree Shops joins them. What is it about home goods that seem to be a significant part of the problem for both chains? Are Millennials less into home decor, or is home decor the first to go when consumers feel economic pressure?
Whatever the cause, let’s wish them a successful recovery. The toy industry needs healthy retailers.