Christmas décor retailer Gordon Companies seeks Chapter 11 protection amid holiday rush

Gordon Companies Inc., which runs the online stores Christmas Central, Christmas.com and Northlight, submitted a Chapter 11 petition in New York, revealing liabilities of $32.2 million to 458 creditors, including logistics firms FedEx and UPS and corporate giants Microsoft and Pepsi. The restructuring will allow the company to keep its websites running while it works out a repayment plan. This move occurs just before what experts expect to be the largest U.S. holiday sales season on record, with projected consumer spending of $1 trillion and a 4.5 percent year-on-year increase despite lingering inflation and high fuel costs.

Rival online sellers Balsam Hill and The Christmas Palace have begun early-bird promotions, and Spirit Christmas is preparing pop-up stores. Large retailers such as Amazon, Best Buy and Target are gearing up for October discount events, while research firms IBISWorld and Morningstar warn shoppers may need to dip into savings and avoid new debt.