CHESTERFIELD COUNTY, Va. — Hundreds of small business owners are scrambling to clear out their inventory after The Painted Tree announced it is closing stores nationwide and filing for bankruptcy.
The Painted Tree operates as a small business shopping mall where owners rent booths instead of opening their own storefronts. There are two locations in Central Virginia, one in Chesterfield and another in Glen Allen.
Vendors must remove all of their inventory by Friday. Staff will be on-site to let them into the buildings.
"We got a call that said look, all of the stores are going to be closing nationwide, you need to go get your stuff right now, The Painted Tree is filing for bankruptcy," Katie Cominsky said.
Cominsky owns HoneyBloom Company and is one of the many vendors impacted by the sudden closure.
"For The Painted Tree to put us in this position has put a strain on us physically, emotionally, all of the things. We are spent this week, I'm tired, there's been a lot going on," Cominsky said.
The model provided an affordable alternative to traditional retail spaces.
"This was the perfect solution and now it doesn't exist," Cominsky said. "So, all of these businesses, including ours, are trying to figure out what do we do, where do we go."
Now, owners face the logistical challenge of moving and storing their products.
"Inventory is piled up in my house, it's in my car, it's in my mom's car, it's in my sister's car, it's everywhere," Cominsky said.
Beyond inventory, vendors are trying to determine how they will receive their unpaid earnings and whether they will be reimbursed for prepaid rent.
"So, whatever we made for April, we probably won't see," Cominsky said. "Which is crazy because it just feels like you're being robbed because they filed for bankruptcy, so you can't get it back and there's no way to get it back."
In a statement sent to business owners, The Painted Tree addressed the financial concerns.
Owners "will have the opportunity to file a proof of claim with the bankruptcy court case once the filing occurs for any unused, prepaid rent or other accounts you believe are owed to you," the company said.
A proof of claim is an official bankruptcy form where creditors submit the amount of money they believe they are owed. Vendors who do not file a claim are unlikely to recover their funds.
This is a developing story. Email the CBS 6 Newsroom if you have additional information to share.
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