There is no publicly filed class action or consolidated Painted Tree lawsuit as of mid-2026. Painted Tree Boutiques and 64 affiliated entities filed for Chapter 7 liquidation on April 28, 2026, and the bankruptcy court has already told creditors that “no property appears to be available” to pay them. For vendors trying to recover April sales, security deposits, or prepaid rent, the bankruptcy case in Houston is now the only forum, and the realistic outlook is little to no recovery.
Where the Case Is Being Heard
Painted Tree Houston, LLC filed a voluntary Chapter 7 petition on April 28, 2026, in the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division. The lead case is numbered 26-32918 and is assigned to Judge Jeffrey P. Norman. Sixty-five debtor entities are involved, including individual LLCs for each store, Painted Tree Marketplace, LLC, and PTM Staffing, LLC.1Inforuptcy. Bankruptcy Case: Painted Tree Houston, LLC2PACER Monitor. Painted Tree Houston, LLC
On May 7, the court ordered joint administration of all 65 entities under the lead case number. Christopher R. Murray of Jones Murray LLP in Houston is the Chapter 7 trustee. Because the case involves roughly 11,000 creditors, the court approved modified notice procedures on May 18 and designated Stretto, Inc. as the claims and noticing agent. Stretto hosts a case-specific website where creditors can file claims online once a deadline is set.3Elevenflo. Painted Tree Chapter 7 Liquidation
On June 15, 2026, the court granted the trustee’s motion to reject 61 retail leases and abandon remaining fixtures and signage. A Section 341 meeting of creditors was scheduled for June 23, 2026.1Inforuptcy. Bankruptcy Case: Painted Tree Houston, LLC
Why the Court Is Telling Creditors to Stop Filing
In a notice sent to creditors, the bankruptcy court stated: “No property appears to be available to pay creditors.” The notice advised creditors to stop filing proofs of claim and said a follow-up notice would go out if assets later surfaced.4Arkansas Business. No Property Available to Pay Creditors, Painted Tree The trustee has described the estates as having “limited resources”; even standard mailed notice to 11,000 creditors would have cost at least $125,000, more than the estates had on hand.3Elevenflo. Painted Tree Chapter 7 Liquidation
Bankruptcy attorney Rebecca Redwine Grow told WRAL that vendors are unsecured creditors and sit “near the back of the line” behind any secured creditors. If assets do turn up, there is no guarantee unsecured creditors receive anything.5WRAL. Painted Tree Issues Next Steps to Vendors, Company Heads Toward Bankruptcy
Can You Sue Painted Tree Separately?
The bankruptcy filing triggered an automatic stay, which prevents individual creditors from pursuing collection lawsuits against the company or its property outside the bankruptcy process. That blocks small-claims actions, breach-of-contract suits, and other individual cases while the stay is in effect.
East Texas attorney Justin Roberts told KLTV that vendors may have legal grounds for action over unpaid sales, but cautioned that the company’s financial condition could make collection impossible regardless of legal merit.6KLTV. East Texas Attorney Talks Vendor Recourse Following Painted Tree Closure Painted Tree told vendors directly in a follow-up email that it would not handle financial disputes and that all claims had to go through the bankruptcy court.5WRAL. Painted Tree Issues Next Steps to Vendors, Company Heads Toward Bankruptcy
Is a Class Action Coming?
At least one vendor told the Better Business Bureau they were exploring a class action and claimed to have heard from “hundreds of others” with similar experiences.7BBB. Painted Tree Boutiques Complaints Nothing has been publicly filed. Even if a class action were filed against the corporate debtors, the automatic stay would apply, and the same unsecured-creditor problem would remain: a judgment against an insolvent estate does not create money to collect.
What Vendors Should Do Now
The court’s “no property available” notice suggested pausing on proofs of claim until the court signals otherwise. That does not mean vendors should stop protecting the record. A few concrete steps still make sense:
- Watch for notices from Stretto, the court-appointed claims agent, and be prepared to file a proof of claim if the court sets a bar date.
- Download all records from the Painted Tree vendor portal while it remains accessible, including sales history, invoices, lease documents, and payout statements.
- Document the condition of your booth and any missing merchandise with video and photos if you have not already.
- File a complaint with your state attorney general’s office to create a public record of the loss.8Houston City Beat. The Sudden Closure of Painted Tree Boutiques
The Section 341 meeting on June 23, 2026, is the point at which creditors can question the debtor under oath. Vendors do not have to attend in person, but the meeting and subsequent trustee filings are the best source of information about whether any recoverable assets exist.
What Vendors Were Owed
Painted Tree ran the registers centrally and paid vendors on the first of each month, so April 2026 sales, security deposits, and prorated rent for the unused portion of the month were sitting with the company when it closed.9ABC 33/40. Blindsided Vendors Scramble After Sudden Painted Tree Boutiques Shutdown Individual losses ranged from about $1,000 to several thousand dollars per vendor, with some reporting months of missing payouts predating the closure.10614Now. Financials Were in Chaos: Former GM, Vendors Offer Look Inside Collapse
Merchandise recovery was a separate problem. Vendors were given until April 24 to retrieve inventory, but Painted Tree no longer controlled the storefronts. Some landlords locked the doors; others allowed access only on a single day. Vendors reported items missing from booths, and unpaid store managers in some markets voluntarily opened locations so shop owners could collect what remained.11LiveNOW from FOX. Painted Tree Vendors Met Chaos, Stolen Goods After Sudden Closure
Contract Terms That Limit Claims
The vendor agreement itself narrows what vendors can demand. It required shop owners to give 30 days’ written notice to end a term but let the company terminate with only five days’ notice. Prepaid rent was refundable only if a building became “unoccupiable for more than 60 days.”12WRAL. Painted Tree Vendor Agreement Questions Remain Those clauses give vendors a weak contractual basis to insist on refunds of prepaid rent, though they do not extinguish claims for sales proceeds Painted Tree collected and never remitted. Any of these claims still has to be pressed through the bankruptcy, where the court has already signaled there is likely nothing to distribute.