Christmas Tree Shops ghosting Middleboro officials as they brace for hundreds of layoffs
MIDDLEBORO — What does the potential closing of all of Christmas Tree Shop stores across the US mean for its headquarters and distribution center in Middleboro?
Middleboro Town Manager James McGrail said the town is preparing the best it can for the worst possible scenario: over 200 workers being laid off and the closure of one of the largest businesses in town.
News came out last week that Christmas Tree Shop (CTS), which filed for Chapter 11 bankruptcy protection back in May, was planning on closing all of its remaining 73 stores across the US due to worsening finances.
According to a report from the Wall Street Journal, CTS defaulted on a $45 million loan intended for financially restructuring itself. The publication reported on CTS filing with the US Bankruptcy Court in Delaware, indicating the company and its stakeholders would liquidate all remaining stores if a buyer didn’t emerge by the first week of July.
According to the town of Middleboro’s website, the distribution center and headquarters of CTS is 785,369 square feet, making it the largest business space in the Campanelli Business Park.
Christmas Tree Shops not responding to questions from Middleboro officials
Grail, as well as Middleboro Select Board Chair Marc Germain both told the Gazette since news of the business’s deteriorating financial condition, they haven’t heard a thing from CTS, nor has it responded to any inquiries from the town regarding how this will affect local operations.
“It’s been radio silent with the town regarding the closure,” McGrail said.
The Gazette couldn’t reach representation at the number listed for Handil Holdings, which bought CTS in 2020.
The Gazette was unable to reach anyone at the main office of CTS headquarters, located at 64 Leona Road in Middleboro. A representative from its distribution center directed the Gazette to a media spokesperson, Maya Pogoda, who hasn’t responded to messages.
‘out of control’ 8 more Middleboro teens charged in triple stabbing at fire pit party
What is Middleboro doing to help displaced workers?
With no updates as to whether this truly is the end of Christmas Tree Shop, whether a new buyer has been found, or if it will just be closing its stores to convert into an online-only business, McGrail said the Town of Middleboro has been in communication with Mass Hire discussing career services and a plan for helping those potentially laid off with things like seeking new employment, skills training and applying for unemployment benefits.
TMLP linemen crack $100K in OT alone Here are the top 10 highest paid TMLP workers in 2022
How much will Middleboro lose in taxes from Christmas Tree Shops?
Besides layoffs, McGrail said another loss is $82,637 in personal property tax every year to the town from operations at the CTS distribution center.
“We’re putting together a plan, which is what to do when a large closure happens,” McGrail said.
This article originally appeared on The Taunton Daily Gazette: Middleboro braces for layoffs at Christmas Tree Shops headquarters