Christmas Tree Shops is heading for liquidation after defaulting on a loan that funds its bankruptcy, according to reporting in the Wall Street Journal.

The chain retailer filed for bankruptcy in May. The Journal reported that the “plan was to restructure the company’s finances while keeping its ownership intact.”

“The retailer took out a $45 million bankruptcy loan, including roughly $20 million in fresh capital, from its lenders. But the creditors terminated the loan after the company defaulted on the terms due to worsening revenues and liquidity, according to a notice filed with the U.S. Bankruptcy Court in Wilmington, Del. late Thursday.”

Shoppers and workers at the store in Orange, Connecticut Monday expressed grief over the potential closure.

"I'm not happy about that so I wish there was something that could be done so the Christmas Tree Shops could stay forever," said Catherine Edwards, of Norwalk.

There are about 70 remaining Christmas Tree Shops stores in the U.S. that will begin liquidating items within the next week or so.