Your Recovery Guide Is on the Way
Check your email for detailed instructions. In the meantime, here are the most important steps to take right now.
Immediate Priority: Retrieve Your Merchandise
Deadline: April 24, 2026
You have until April 24 to retrieve your inventory and personal property. Stores are open daily from 10:00 AM to 6:00 PM local time. Call the store when you arrive and staff will open the door.
- Bring help, packing materials, and a vehicle large enough for everything in your booth
- Before you start packing, take photos and video of your entire booth from multiple angles
- Document any missing or damaged items
- Keep a written list of everything you remove
- Be respectful to store staff. They lost their jobs too and did not make this decision
Document Your Financial Claims
Before you can recover any money, you need to know exactly what you are owed. Gather the following:
- Rent payments. Bank statements or receipts showing all rent payments, especially the April 11 payment
- Unpaid sales proceeds. Any records of sales made through Painted Tree for which you have not received payment
- Security deposits. Records of any deposits or advance fees you paid
- Your vendor agreement. The contract you signed with Painted Tree. If you do not have a copy, note the approximate date you signed and any terms you remember
- Communications. Save every email, text, and letter from Painted Tree, including the closure notice
Create a single document that lists each amount owed to you, the date it was paid or earned, and the supporting evidence you have. This will be the foundation of your creditor claim.
Filing as a Creditor in the Bankruptcy
If Painted Tree files for Chapter 7 bankruptcy (which is likely), here is what to expect:
- Watch for the bankruptcy filing notice. This will be a public record. You can search for it on the federal PACER system (pacer.uscourts.gov) or check with vendor groups who will likely share the information
- File a Proof of Claim. The bankruptcy court will set a deadline (called a “bar date”) for creditors to file claims. You will need to submit a formal Proof of Claim form listing exactly what you are owed and attaching your supporting documents
- Attend the 341 Meeting of Creditors. The court will schedule a meeting where creditors can ask questions about the company’s finances and assets. You can attend in person or sometimes by phone
- Wait for distribution. The bankruptcy trustee will liquidate the company’s assets and distribute proceeds to creditors in priority order. Unsecured creditors (which is likely your category) are paid after secured creditors and priority claims
You do not need an attorney to file a proof of claim, but having one review your filing can help ensure it is complete and properly documented.
File a Complaint with Your State Attorney General
Consider filing a consumer complaint with the Attorney General’s office in your state. If enough vendors file complaints, it may trigger an investigation into how the closure was handled, particularly the timing of rent collection relative to the closure announcement.
Each state has its own process, but most allow online filing through the AG’s website.
What to Expect Going Forward
We want to be honest with you: Chapter 7 bankruptcy is a liquidation process, and unsecured creditors often recover little or nothing. The process can take months or even years. That does not mean you should skip filing a claim, because any recovery is better than none, and the process costs you very little.
In the meantime, focus on what you can control:
- Get your merchandise out before April 24
- Document everything thoroughly
- File your proof of claim when the bankruptcy case opens
- Consider whether your business model needs to shift away from booth-rental dependence
Need Legal Help?
If you are owed a significant amount or need help navigating the bankruptcy process, we offer free consultations for affected vendors. Surge Business Law represents small businesses in Iowa and Texas.