Specialty products retailers have struggled with many of the same economic problems that mainstream retailers have faced over the last two years.
Among the issues have been rising labor and product costs driven by inflation and new tariffs. Rising interest rates have also cut into profits.
Additionally, some retailers have lease obligations that no longer make sense, since consumers have changed their brick-and-mortar shopping habits and purchase more merchandise online.
Niche retailers that target specific consumers have little margin for error.
The greeting cards publishing industry continues to struggle as industry revenue is expected to drop to $5.6 billion in 2025 compared to $5.7 billion in 2024, IBISWorld reported.
U.S. consumers buy 6.5 billion greeting cards annually, the Greeting Cards Association told the U.S. Chamber of Commerce CO publication, and Hallmark and American Greetings dominate sales, capturing about 80% of the market, CO said.
Millennials: the largest greeting card buyers
“The millennial generation is now the largest buyers of greeting cards from a dollar standpoint,” said George White, founder of Up with Paper, a pop-up greeting card company, and past president of Greeting Cards Association.
“[Millenials] saved our industry,” said White.
Hallmark Cards stores, founded in 1910, were once common specialty stores, often found in most regional malls and strip malls.
Related: Another popular Italian dining chain filed Chapter 11 bankruptcy
Consumers found it convenient to drop into a Hallmark store to pick out the perfect birthday or special occasion card for friends or family members.
But with the expansion of the internet since the 1990s, people began sending online e-cards and finding other options to greeting card stores.
Hallmark Cards stores face several competitors
Many supermarkets and grocery stores, as well as big-box retailers like Walmart and Target, carry Hallmark Cards in their greeting cards sections, which eliminates the need to seek a Hallmark store.
Competition has forced hundreds of Hallmark stores to close in just the last five years.
Hallmark Cards store count drops:
- 2020: 2,000 stores
- 2025: 1,146 stores
The chain had about 2,000 mostly independently owned stores in 2020, the Wall Street Journal reported, but by July 2025, about 1,146 Hallmark stores existed, according to ScrapeHero.
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Banner’s Hallmark files for Chapter 11 protection
Economic issues led iconic greeting cards retailer Banner’s Hallmark Gold Crown stores to file for Chapter 11 protection, seeking to reorganize its business.
The Gaithersburg, Md.-based independent Hallmark Gold Crown chain’s entity Banner’s of Abingdon LLC and 40 affiliates filed their petitions on Sept. 14 in the U.S. Bankruptcy Court for the District of Columbia listing $10 million to $50 million in assets and liabilities.
The debtor’s largest unsecured creditors include Hallmark Marketing Company LLC, owed over $6.4 million; Crown MAC, owed over $5.3 million; and PNC Bank NA, owed over $3 million, according to Bondoro.com.
Banner’s Hallmark top unsecured creditors:
- Hallmark Marketing Company LLC, owed over $6.4 million.
- Crown MAC, owed over $5.3 million.
- PNC Bank NA, owed over $3 million.
The petition indicates that funds will be available to pay unsecured creditors at the conclusion of the bankruptcy case.
Banner’s Hallmark is an independent operator of 39 Hallmark Gold Crown stores in Virginia, according to its website, but it is not a franchisee or a company-owned chain.
Hallmark retail chain operates for over 45 years
The retailer, which opened for business over 45 years ago, purchases Hallmark products to sell in its stores and is licensed to operate under the Hallmark Gold Crown brand.
Leonard Banner, president and CEO of Banner’s Hallmark, has previously served as a member of the Hallmark Gold Crown Advisory Board. The chain has won numerous awards, including the Hallmark Gold Crown Retail Excellence Award.
The debtor’s bankruptcy attorney was not immediately available for comment.
Specialty retailer has similar challenges
Another niche retailer, Ezpz, which markets oral care and feeding products for children of all ages, and pet bowls for dogs and cats, competes with Walmart, Target, as well as PetSmart and Petco, for business. EZPZ’s products are even sold at Target.
The company was launched in 2014 through crowdfunding platform Kickstarter and offers oral care products like toothbrushes and feeding items such as plates, cups, bowls, straws, utensils, and cleaning accessories for children.
The company’s footprint isn’t very large as its products are sold in about 160 retail stores nationwide.
Products can also be purchased through baby registries at Target, Amazon, Babylist, Crate & Kids, and Pottery Barn Kids. It also sells products through Shopify.
The Parker, Colo., company needed to file for Chapter 11 protection on June 18 to reorganize as it struggled to generate sufficient revenue to cover its debt and expenses.
Related: Failed auto chain and lender liquidates in Chapter 7 bankruptcy
