MIDDLEBORO – More than 200 jobs Middleboro jobs could be in jeopardy as at the the Christmas Tree Shops reportedly prepares to shut down altogether after failing to repay loans that were part of a May bankruptcy “reorganization” deal.

The national retailer has operated a 785,000 square foot distribution center in the Campanelli Business Park on Leona Drive since 1996. 

In May, the chain filed for bankruptcy because of stores underperforming. The company’s plan to close its remaining 83 stores and cease operations completely was detailed in court documents filed in U.S. bankruptcy court on June 28. Unless a buyer emerges by later this week to take over the company, the stores will begin going out of business sales soon. 

“We are still holding out hope that things work out for the company and its employees,’’ Middleboro Town Manager James McGrail said Monday.

The distribution center, located at Campanelli Business Park on Leona Drive, is by far the largest site in the Leona Drive business park, with an area of 785,369 square feet and an additional 250,000 square feet reserved expansion area, according to the Town of Middleboro website.

Christmas Tree Shops owners Marc and Pam Salkovitz entered into a subleasing agreement earlier this year for the distribution center with a third party, according to bankruptcy declaration documents submitted May 5 by Marc Salkovitz.

The name of the third party owner was not immediately available.

It is unclear what that means for the future of business at the warehouse and its employees. 

The privately held Christmas Tree Shops was founded in 1950 as a seasonal gift shop and grew into a thriving year-round enterprise. At the beginning of this year, it operated more than 80 stores, including 15 in Massachusetts. 

Yet CTS, as the company rebranded itself, has been struggling for some time. Rising interest rates and oil prices piled on top of the troubles felt by most brick-and-mortar retailers during the pandemic.

In a bankruptcy declaration statement May 5, Marc Salkovitz  said customer traffic in the stores decreased y about 35 percent since May 2022,  and sales slid by 25 percent. 

In 2022, the company’s net earnings were negative $45 million, according to Marc Salkovitz.