The End Of An Era: What Happened To The Christmas Tree Shop In Danbury And What's There Now?
The Christmas Tree Shop in Danbury, Connecticut, is permanently closed. The beloved home goods and seasonal retailer, located at 15 Backus Avenue in the Danbury Square shopping center, shuttered its doors in August 2023 as part of a catastrophic nationwide bankruptcy and liquidation that saw the end of the entire Christmas Tree Shops chain. For shoppers who frequented the Danbury location for holiday decor, quirky gifts, and discounted home essentials, the closure marked a significant loss in the local retail landscape, but the story doesn't end there—the large-format retail space has since been filled by a major new tenant, signifying a new chapter for the busy plaza.
The transition from a seasonal and home-focused discount store to a major arts and crafts retailer has completely reshaped the retail dynamic at Danbury Square. As of the most recent updates in late 2025, the massive 60,000-square-foot facility that once housed the Christmas Tree Shop has been transformed and is now home to one of the largest arts and crafts chains in the United States, providing a fresh draw to the area and ending the period of vacancy. This article dives deep into the full timeline of the closure, the reasons behind the brand's collapse, and the exciting details of the new retailer that has taken its place.
The Christmas Tree Shops Collapse: A National Bankruptcy Timeline
The closure of the Danbury Christmas Tree Shop was not an isolated event but rather a local symptom of a broader, national retail failure. The company, which was known for its eclectic mix of merchandise ranging from patio furniture to holiday ornaments, faced insurmountable financial difficulties following the COVID-19 pandemic and subsequent economic challenges.
Key Events Leading to the Danbury Store's Closure
The Christmas Tree Shops brand, which had been acquired by Bed Bath & Beyond in 2003 and then sold to Handil Holdings in 2020, struggled to adapt to the post-pandemic retail environment.
- May 2023: Christmas Tree Shops officially files for Chapter 11 bankruptcy protection. Initially, the company planned to reorganize and keep many stores open, including the one in Danbury.
- July 2023: Creditors terminated a crucial $45 million bankruptcy loan after the company defaulted, forcing a rapid shift from reorganization to full liquidation. This decision sealed the fate of all remaining stores.
- August 2023: The Danbury location, along with the three other Connecticut stores (in Manchester, Orange, and Waterford), began final liquidation sales.
- August 12, 2023: This date was announced as the "Last Day" of business for all Christmas Tree Shops nationwide, marking the official end of the Danbury store and the brand itself.
The Danbury store, located at 15 Backus Avenue, Suite 42, quickly emptied its shelves of discounted merchandise, leaving a massive retail void in the Danbury Square plaza.
From Holiday Decor to Hobby Haven: The New Tenant at 15 Backus Avenue
The departure of a major anchor store like Christmas Tree Shops often leaves shopping centers in a difficult position, but the Danbury Square plaza, managed by Regency Centers, moved swiftly to secure a major replacement. The new tenant is a significant win for the local economy and for craft enthusiasts across Western Connecticut.
Introducing Hobby Lobby: Danbury’s New Arts and Crafts Destination
The space formerly occupied by the Christmas Tree Shop has been leased and completely renovated for Hobby Lobby, the national arts and crafts retailer. This move is part of a broader expansion for Hobby Lobby in Connecticut, which already operates several successful locations across the state. The new store is a significant addition, bringing a specialized retail focus to the area.
- New Retailer: Hobby Lobby (Arts and Crafts Retailer)
- Location: 15 Backus Avenue, Danbury Square, Danbury, CT
- Store Size: Approximately 60,000 square feet, occupying the entire former Christmas Tree Shops footprint.
- Official Opening Date: The new Hobby Lobby store in Danbury, Connecticut, officially opened its doors on September 12, 2025.
The opening in late 2025 is a crucial update, confirming that the space is no longer vacant and is actively contributing to the retail vitality of Danbury. Hobby Lobby’s presence means Danbury residents now have a massive, dedicated resource for a wide range of creative supplies, home decor, custom framing, and seasonal items, filling a different but equally important niche than the one left by the former tenant.
Danbury Square Revitalization: A New Era of Retail
The transition at the former Christmas Tree Shop site is just one piece of a larger revitalization effort happening at the Danbury Square plaza. The shopping center is actively filling vacant spaces and attracting new, diverse tenants, transforming it into a modern, multi-use destination that goes beyond traditional big-box retail.
The closure of the Christmas Tree Shop, while regrettable for its fans, provided an opportunity for the shopping center to re-tenant with businesses that better reflect current consumer demands. The addition of Hobby Lobby is a major anchor, but other new entities are also contributing to the plaza's fresh appeal.
Key New and Upcoming Tenants in Danbury Square
Danbury Square is becoming a hub for dining, entertainment, and specialized health services, diversifying its offerings alongside traditional retail.
- Hobby Lobby: The primary new anchor, occupying the former Christmas Tree Shops space.
- Elicit Brewing Company: A significant addition, this popular Connecticut brewpub is setting up a new location in the plaza, often taking over and renovating a large former retail space (like the old Barnes & Noble). Their presence adds an entertainment and dining component.
- Agogo Buffet and Sushi: A new dining option that is moving into a different vacant restaurant space within the plaza, boosting the food offerings.
- IVX Health: Bringing specialized healthcare services to the shopping center, reflecting a national trend of integrating non-traditional tenants into retail environments.
This mix of arts and crafts (Hobby Lobby), specialty dining (Agogo Buffet and Sushi), entertainment (Elicit Brewing), and health services (IVX Health) signals a clear strategy to create a more resilient and attractive retail center. The Danbury Square plaza, located strategically near the Danbury Fair Mall, is adapting to the changing retail climate by offering experiences and services that complement its anchor stores like Stop & Shop and Total Wine.
The Final Word on Christmas Tree Shops Danbury
While the nostalgia for the Christmas Tree Shop remains strong—a place where shoppers could find everything from seasonal decorations to budget-friendly housewares—its physical presence in Danbury is now history. The building at 15 Backus Avenue has been successfully repurposed, demonstrating the resilience of the Danbury retail market. The new chapter, led by the massive Hobby Lobby store, ensures that the space is not a relic of the "retail apocalypse" but a vibrant part of Danbury's current and future shopping landscape, providing a new source of goods and employment for the region starting in late 2025.
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