(Reuters) - Christmas Tree Shops, a home-decor retailer that was spun off from Bed Bath & Beyond (NASDAQ:BBBY) in 2020, filed for bankruptcy protection on Friday.
Christmas Tree Shops (CTS (NYSE:CTS)) said in a statement that its bankruptcy was a "strictly financial restructuring," and that most of its stores would remain open without disruption.
The Middleborough, Massachusetts-based company has between $50 million and $100 million in assets and between $100 million and $500 million in debts, according to a Chapter 11 petition filed in Delaware bankruptcy court.
CTS said its debt had become unsustainable due to increased interest rates, inflationary pressures and decreased consumer demand for its home decor and seasonal decoration products.
CTS entered bankruptcy with a $45 million loan from Eclipse Business Capital SPV LLC and ReStore Capital LLC, according to the company.
The company intends to close 10 of its 82 stores during its bankruptcy, seeking to emerge from Chapter 11 by August.
"We are confident we will emerge a stronger business, better positioned to grow and prosper into the future,” CTS Chairman Marc Salkovitz said in a statement.
Handil Holdings, which acquired the company from Bed Bath & Beyond in 2020, also filed for Chapter 11 bankruptcy. Handil has been taking steps to improve operational efficiencies, inventory management, IT and other aspects of the business since taking over, CTS said.