Economic Strain Forced This Independent Greeting Card Chain To File For Chapter 11 Bankruptcy

Sending birthday and holiday cards is a seasonal scramble for the best of us. Even the most loving family members can forget to send a greeting card, and in the digital age, the relevance of paper cards is quickly fading as their digital alternatives (or even emoji-stuffed texts) offer a cheaper and faster means of greeting someone. The resulting lack of demand, coupled with recent tariffs, has put the squeeze on brick-and-mortar greetings card shops, and one long-running independent chain is just about squeezed dry. Banner's Hallmark (under its parent company, Banners of Abingdon LLC) announced its Chapter 11 bankruptcy filing in September 2025.

In a filing made on September 14, 2025, Banner's Hallmark and 40 of its affiliates filed for Chapter 11 protection in the District of Columbia. The filing lists $10 to $50 million in assets and liabilities, with top unsecured creditors including Hallmark Marketing Company, LLC, Crown MAC, and PNC Bank NA. Additional unsecured creditors include Godiva Chocolatier Inc, Ganz USA LLC, Stonewall Kitchen, Vera Bradley Sales LLC, and Enesco LLC. LBPO Management LLC of Gaithersburg, the company that manages the 39 Banner's Hallmark stores, also filed for bankruptcy.

The affiliated Banner's Hallmark filings cited cash flow strain related to the acquisition of seasonal retail products. The company plans to pay its outstanding debts and reorganize its business.

While under Chapter 11 protection, Banner's Hallmark says it will continue to operate all of its 39 local stores. However, the company owes its top three creditors $14.7 million. A cursory division of $14.7 million across 39 stores gives us around $377,000 worth of merchandise (pre-profit margin) per Banner's Hallmark store. For the sake of exercise, that's about $75,000 worth of $5 greeting cards per Banner's Hallmark store in the bankruptcy filing. In a modern world where a text or social media post suffice for a greeting, brick-and-mortar card shops are losing their physical footing.

Banner's Hallmark stores sell far more than greeting cards to earn their keep. However, fans of cards, Hallmark ornaments, seasonal Vera Bradley bags, and a host of seasonal home decor may also be worried. Banner's Hallmark's filings cite reassessment of leasing arrangements to help address their debts. This means some stores could merge or close during the reorganization despite the chain's stated best intentions. Some store spots may even get outbid by higher-traffic businesses. In fact, over 850 Hallmark stores have closed since 2000 already. New York City's last Hallmark Gold Crown store shut its doors in January 2025 after losing its location to a cannabis shop willing to fork over more money for monthly rent. As with Macy's store closures, the name of any retail game is ultimately as connected to real estate as it is to profit margins.

Banner's Hallmark can trace its roots from its award-winning regional chain of Hallmark Gold Crown stores today back to a single Hallmark store in the 1970s. But despite its rich history and business excellence, the company may struggle to overcome its financial difficulties, partly due to the realities of tariff-related pricing. Tariffs affect all levels of trade and pricing, including Hallmark-branded merchandise.

According to Hallmark, 75% of the company's products are made in Kansas. However, many of its ornaments are manufactured in Asian countries, including Thailand and China. It's no wonder that President Donald Trump's tariffs on Chinese goods took Hallmark by surprise. The tariffs took effect shortly after the company released its "Dream Book," or guidebook containing official prices for products. Hallmark responded by raising its retail prices. In a July 2025 statement explaining its decision, Hallmark said, "As we look toward the holiday season, we've made the necessary decision to adjust pricing on select imported products from our gift and ornament collections that are impacted by the current economic climate."

Last-minute price hikes on Hallmark's imported, highly sought-after Keepsake Ornaments may have added to the company's financial woes. Rolling back de minimis exemption laws may also raise the prices of many other imported seasonal gift items, adding some tarnish to the gold crown.