Phoenix makers pivot after Painted Tree vendor market abruptly closes

Denise McCreery of D’vine Gourmet couldn’t hide her feelings when Painted Tree Boutiques abruptly shuttered all its stores nationwide. Within hours, she offered a much-needed lifeline to the stranded vendors via social media.

McCreery is inviting vendors to inquire about selling at her Chandler store and/or at her sister shop, Boutique on Boston.

“I was not a fan of how Painted Tree handled this,” McCreery says. “It’s a shock to lose your business like that.

“We have had our store for 23 years. Everything we carry is made in Arizona. We have 125 vendors from Arizona. I know people, so I can help. I’m shocked by the way they were treated.”

Painted Tree Boutique, which leased space to small vendors, unexpectedly closed more than 60 of its locations on April 14. The retailer cited rising costs and changing market conditions, according to reports.

Vendors were instructed to remove their merchandise by April 24, as Painted Tree Boutiques prepared to file for Chapter 7 bankruptcy.

According to an FAQ email obtained by the Phoenix New Times, nearly every question — from security deposit returns to March payouts — was answered with “Painted Tree anticipates the filing of a Chapter 7 bankruptcy liquidation case.”

Dale Capital Partners, the Little Rock, Arkansas-based investment firm that owns Painted Tree Boutiques, didn’t respond to emails seeking comment. Phone calls went unanswered.

Megan Martin of Truly FARMa was a merchant at the Painted Tree Boutiques in Gilbert. The teacher is one of the fortunate few who doesn’t rely on her company as a sole source of income. She sold her tallow products in Gilbert for a year.

“It was quite sad going to the Painted Tree Boutiques and cleaning house, knowing the day before we just restocked everything,” she says. “We would wave hello and see all of our vendor friends and new people moving in.

“I wanted to support everyone because I, at least, have an online platform where I can sell my tallow skincare. But there were these wonderful elderly ladies who were passing the time by crocheting and making wreaths. They don’t have an online platform.” She is unsure if the women set up shop elsewhere.

Martin says she saw plenty of red flags, including slow payment. “I know people pulled out thinking, ‘I don’t know where this is headed — and we’re not happy.’

“Something just didn’t seem right,” adds Martin, who also sells her products at the Gilbert Farmers Market.

“We were getting all these emails saying, ‘Hey, we’re seeing your tickets. We’re responding to all your tickets and hiring new staff to help streamline automatic deposits.’ We thought things were turning around.”

“It made me sad. I wanted to just try to help as much as I could by having people tag them or tag themselves, and follow each other on social media.”

Katheen Sabol of Scottsdale-based Mila + Stevie was suspicious as well.

Sabol, who creates “modern bohemian glam jewelry,” says, “It started with the idea of promoting small businesses — giving small businesses a platform to sell. Two years ago, it was sold to a private equity company. That’s when things went downhill.

“There were delays with vendors getting paid, and shortened hours. Some stores needed a lot of maintenance, yet they were still opening new stores, expanding into new states and leasing space. It was evident that corporate was interested in selling leases, rather than promoting shoppers to go into the store.”

Not only did the closure come as a shock, but some out-of-state vendors had no way of picking up their products — or so they thought.

“I had booths in Scottsdale and four booths in Texas,” Sabol says. “I went on a Facebook page for Painted Tree vendors nationwide. I asked if anyone would pack up my inventory and mail it to me in Arizona. People I’ve never met volunteered and I have inventory in transit from Texas. We’re a family.”