A BELOVED greeting card chain serving customers for 55 years has filed for bankruptcy.
The filing comes as the greeting card publishing industry continues to struggle and lose revenue as consumers opt for digital alternatives for cards, calendars and planners, according to IBIS World.
Banner’s Hallmark, a gift specialty company that popped up in the 1970s, has filed for Chapter 11 bankruptcy[/caption]
The industry revenue is expected to drop to $5.6 billion in 2025, down from its $5.7 billion in 2024.
Companies are suffering as the demand for physical cards decreases, with younger generations turning to social media and e-cards for celebrations, leading chains to close stores and file for bankruptcy.
On Sunday, Banner’s Hallmark, a gift specialty company that popped up in the 1970s, filed for Chapter 11 bankruptcy.
Banner’s Hallmark filed alongside 40 affiliates, according to Bondoro.
The company, headquartered in Gaithersburg, Maryland, grew from one storefront to a chain of 39 Hallmark Gold Crown Stores throughout Virginia, according to its website.
Banner’s Hallmark sells merchandise from several brands, including big names like Disney, Hallmark, Peanuts and Vera Bradley
Banner’s Hallmark stores will remain open despite the bankruptcy, Maurice VerStandig, the company’s bankruptcy attorney, told the Kansas City Business Journal (KCBJ).
The company has faced store closures in the past, announcing the closure of two stores in Virginia in January 2019.
Hallmark Cards has also faced significant store closures in the last five years.
Millions could be impacted by greeting card store closures as US consumers buy around 6.5 billion greeting cards annually, with the most purchases occurring around Christmas and Mother’s Day, according to the Greeting Card Association.
However greeting card store closures might not impact shoppers looking to spend less on cards.
‘SO EXPENSIVE’
One Reddit user complained in 2023 about the cost of greeting cards.
“When did greeting cards get so expensive?” the user wrote. “I hate spending a minimum of $5.00 on a nice greeting card.”
Other social media users were quick to suggest shopping at Dollar Tree, Trader Joes and Aldi as alternatives.
A former Dollar Tree employee revealed to Business Insider in June, “Dollar Tree is still the only place I’ll buy greeting cards.”
“I’ve seen drugstores and stationery stores charge $5 or more for greeting cards. Dollar Tree offers a wide variety of them that are two for $1,” the former employee said.
How does bankruptcy work?
Bankruptcy is a specific legal process that helps companies eliminate debt they can’t repay.
The process allows businesses to start fresh and gain access to new credit.
Supervised by federal courts, bankruptcies allow a company to sell off its assets more easily to pay off creditors, according to Investopedia.
Chapter 11, a common process for companies, is used to restructure a business with the goal of remaining open – even if it means selling off most of the company’s properties.
Chapter 7, on the other hand, sells all of a company’s assets, putting it out of business.
Chapter 15, alternatively, allows for collaboration between American and foreign courts to conduct bankruptcy proceedings with “parties of interest involving more than one country,” per the United States Courts.
In 2020, the Wall Street Journal reported that the company operated around 2,000 stores in the US. As of July 2025, there are only 1,146 Hallmark stores in the country, per ScrapeHero. (20)
IBIS World’s insights revealed the greeting card industry will face additional challenges as the increased tariffs on imported paper and raw materials increase expenses for companies.
“Publishers will face choices about absorbing costs or raising prices, potentially affecting demand,” IBIS World said.
