Business

Newbury Street boutique files for Chapter 7 bankruptcy

After 25 years on Boston’s fashion corridor, the woman-owned shop is down to a single location and is likely to close permanently.

A view of Newbury Street. David L. Ryan / The Boston Globe, File

December 23, 2025

1 minute to read

LIT Boutique, a women’s designer clothing and accessories shop that has been a fixture on Newbury Street for 25 years, has filed for Chapter 7 bankruptcy, signaling a likely end for the longtime retailer.

Once a small local chain with four locations across Boston; Portsmouth, New Hampshire; and Newport, Rhode Island, the woman-owned boutique has steadily shrunk and now operates only its original store at 223 Newbury St.

The bankruptcy filing comes as the Retailers Association of Massachusetts reports that the state’s small-business community is at a critical inflection point due to rising operating costs, product availability constraints stemming from tariffs, and reduced profitability.

LIT International Group, Inc., the company name for LIT Boutique, filed for bankruptcy on Dec. 11 in the District of Massachusetts, United States Bankruptcy Court.

Owner Ying Lisa Shah listed assets of over $28,000, mostly in unsold inventory, and liabilities of over $2.5 million, including credit card debt, taxes, and unpaid rent.

The biggest creditor listed was the U.S. Small Business Administration, which claims the business owes it $2 million.

Ciao LLC sued LIT International Group in July for breach of contract under a commercial lease, filing in Suffolk Superior Court.

Ciao alleged in the complaint that LIT International Group signed a lease in December 2024 for 236 Hanover St. in the North End with the intention of operating a retail business. However, Ciao said the store failed to pay all base rent and additional rent owed since March 2025, totaling approximately $60,000.

The court issued a default order earlier this month after LIT International Group failed to defend itself.

LIT Boutique’s bankruptcy lawyer did not respond to a request for comment. Boston.com was unable to reach the store’s owner.

On the LIT Boutique Instagram account, amid comments obsessing over the styled looks, customers are questioning what’s happened.

One commenter wrote, “IM CRYING WHERE DID YOU GUYS GO,” with a crying face emoji, while another asked what happened to the Portsmouth and North End stores.