Artist & Craftsman moves to close at least two stores amid bankruptcy

Artist & Craftsman Supply has moved to close at least two stores and won temporary court approval to keep using its cash, even as federal officials and unsecured creditors object to parts of its Chapter 11 restructuring in Maine.

The retailer, which operates art supply stores in multiple states and online, filed for bankruptcy protection on December 21. Since then, it has remained in control of its operations as a debtor-in-possession, meaning management continues running the business under court supervision.

One of the most consequential developments since filing for bankruptcy is the company’s decision to close at least two stores by March 31.

Artist & Craftsman files for Chapter 11 bankruptcy

The retailer says paying workers became an immediate concern.

Urgent MatterAdam Schrader

Artist & Craftsman asked the court in a January 27 filing to allow it to break the leases for the two stores, located in Philadelphia and in Kansas City, Missouri. It said it had already begun liquidating its inventory at the two stores.

The company said the leases are “no longer beneficial for the estate” because it intends to close those stores as part of its reorganization strategy. It added that it “continues to review the performance of its various locations,” including store revenue and rent costs, and described the identified leases as “financially burdensome.”

It asked the court to set April 27 as the deadline for landlords to file claims arising from the broken leases.