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Nearly 40 Banner's Hallmark stores in Virginia file for Chapter 11 bankruptcy. Details here
Banner’s Hallmark, the iconic American greeting card retailer, is seeking reorganisation, citing seasonal struggles and mounting debt pressure.
Banner’s Hallmark, the iconic greeting card retailer of Hallmark Gold Crown stores in Virginia, has filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Columbia, the Washington Business Journal reported. The filing for Chapter 11 bankruptcy was made on September 14 by Banner’s of Abingdon LLC, also known as Banner’s Hallmark Shop, along with 40 affiliated entities, including Banner’s of Harrisonburg VA LLC.
Chapter 11 bankruptcy filing details
Court records list the main case number as 25-00378, with related filings under separate numbers for the affiliated stores, according to the Washington Business Journal.
The company reported assets and liabilities both in the range of $10 million to $50 million. According to the filing, funds are expected to be available for distribution to unsecured creditors.
According to The Street, Banner’s largest unsecured creditors include:
- Hallmark Marketing Company LLC, owed more than $6.4 million
- Crown MAC, owed more than $5.3 million
- PNC Bank NA, owed more than $3 million
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About Banner’s Hallmark
Hallmark Cards stores, founded in 1910, were once common specialty stores found in most regional and strip malls.
The company operates 38 to 39 Hallmark Gold Crown stores, primarily in Virginia. These stores are independently owned and licensed under the Hallmark brand but not franchised or directly owned by Hallmark itself.
Banner’s has been in business for more than 45 years. Its president, Leonard Banner, has served on the Hallmark Gold Crown Advisory Board, and the chain has received awards, including the Hallmark Gold Crown Retail Excellence Award.
Industry pressures
Greeting card stores have faced declining foot traffic as more consumers buy cards online or from supermarkets and big-box retailers. Hallmark’s store count in the US has fallen from about 2,000 in 2020 to around 1,146 in 2025.
Industry revenue is also shrinking. IBISWorld estimates that U.S. greeting card sales will drop to $5.6 billion in 2025, down from $5.7 billion last year.
George White, founder of the pop-up card company Up With Paper and past president of the Greeting Card Association, noted on The Economics of Everyday Things podcast that millennials remain the largest buyers of greeting cards by spending. “They saved our industry,” White said, per the U.S. Chamber of Commerce.
What Chapter 11 bankruptcy means
Chapter 11 bankruptcy allows a company to continue operating while reorganizing its debts and business structure under court supervision. Unlike liquidation, it gives businesses time to stabilize operations, negotiate with creditors, and attempt to return to profitability.
Banner’s cited seasonal cash flow challenges and said it hopes to reorganize in time for the holiday season, when sales are strongest.
FAQs
What is Banner’s Hallmark?
Banner’s Hallmark is an independently owned operator of Hallmark Gold Crown stores, mainly in Virginia.
Why did Banner’s Hallmark file for bankruptcy?
The company cited seasonal cash flow issues and broader industry challenges, such as inflation, higher costs, and a decline in in-store sales.
What kind of bankruptcy did they file?
Banner’s Hallmark filed for Chapter 11 bankruptcy, which allows businesses to reorganize their debts while continuing to operate.
How many stores are affected?
Around 38 to 39 Hallmark Gold Crown stores in Virginia are part of the filing.
Who are the largest creditors?
Court filings list Hallmark Marketing Company LLC, Crown MAC, and PNC Bank as top unsecured creditors.
