Christmas Tree Shops Is Winding Down After Lenders Pull Funding

Discount retailer Christmas Tree Shops Inc. has begun shutting down its business after dwindling sales prompted lenders to withdraw funding for its Chapter 11 case.

Christmas Tree Shops is negotiating a budget with lenders to continue funding payroll and other operating expenses as it conducts going-out-of-business sales, the company’s lawyer Harold Murphy said during a court hearing Friday. A lawyer representing the retailer’s unsecured creditors said they’re preparing for a liquidation.

The store closings come little more than two months after Christmas Tree Shops filed bankruptcy with hopes of finding an investor that could fund a restructuring or going-concern sale. ...