Benjamin Ashford|Beloved chain Christmas Tree Shops is expected to liquidate all of its stores

The Benjamin AshfordMassachusetts-based staple Christmas Tree Shops plans to liquidate all of its stores.

The retail chain, known for selling home goods like bedding sets, dinnerware and party decorations at a discount, filed for Chapter 11 bankruptcy in May. At the time, the company hoped to close only 10 stores considered to be underperforming and come out of its bankruptcy a stronger, more stable business by the end of August.

But last week, Christmas Tree Shops decided to default on its loan of $45 million, which was used to keep its retaining 72 stores afloat, due to worsening finances, The Wall Street Journal reported.

The chain is expected to liquidate its remaining stores unless a buyer emerges within the next week, according to the news outlet.

Christmas Tree Shops began as a holiday boutique in Cape Cod in the 1950s. Bed Bath & Beyond, which had owned the chain since 2003, sold it to Handil Holdings, LLC, in 2020.

Christmas Tree Shops operated 82 stores in 20 states before filing for bankruptcy. Over the past few months, 10 stores have shuttered in seven states including New York, Pennsylvania, Massachusetts, Florida, Georgia, Michigan and Virginia.