A vendor agreement obtained by WRAL News sheds new light on some questions surrounding the sudden announcement that Painted Tree Boutiques will shutter its more than 60 stores nationwide, including in North Carolina.
In an email to shop owners sent on Tuesday, the company confirmed plans to cease all business operations effective immediately and no longer conduct retail sales at any location.
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A spokesperson with the company told WRAL News that "rising costs, shifting market conditions, and the evolving nature of how people shop have presented challenges" that the company could not overcome.
The announcement also came with details that shop owners would have until April 24 — just a 10-day window — to gather their inventory.
In a copy of an agreement for shop owners sent to WRAL News, the company's "Moving Out" policy states that a 30-day written notice is to be sent by shop owners themselves before allowing the current term to end.
Contrary to that, in the later "Termination" section of the agreement, the company wrote that it "reserves the right to terminate this Agreement upon five days' notice to Shop Owners."
WRAL News reached out to the company for clarification on the company's policy.
"Got an email yesterday morning and rushed over there so it wouldn't be confiscated," says Nicole St. Laurent, who has now moved hundreds of dollars worth of inventory back to her garage in Franklin County.
Questions remain about the status of payments by shop owners to operate within Painted Tree in the first place.
St. Laurent added that the hundreds of dollars she spent on rent, as well as an initial security deposit, to be inside Painted Tree's Raleigh location is not only in question, but she also does not expect it to be returned.
"I don't know anything. I plan on letting the dust settle," St. Lauren says.
The "Termination" section stipulates that Painted Tree will refund rent paid in advance, but on the condition that the building itself is deemed unoccupiable for more than 60 days. In this case, the shop owner or Painted Tree can terminate the agreement.
Gage Bennington, a shop owner moving her inventory out of Raleigh on Wednesday, said, "We just paid rent, and so with certainty we're not getting that back. We're not getting deposits back. And we're not going to get sales for this month either."
The agreement states that security deposits are half of the monthly fee listed for a 12-month plan.
Painted Tree Boutiques is known for supporting small business owners across the country by allowing entrepreneurs the opportunity to set up physical storefronts. Painted Tree has locations on Creedmoor Road in Raleigh and at Cary Crossroads in Cary.
