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Microstock Photography Forum - General => General Photography Discussion => Topic started by: Pixart on February 24, 2009, 10:47
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The first big photo chain I've heard of in trouble. Likely not the last...
UPDATE 1-Ritz Camera files for Chapter 11 bankruptcy
Mon Feb 23, 2009 12:12pm GMT
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[-] Text - NEW YORK, Feb 23 (Reuters) - Ritz Camera Centers Inc, which said it is the largest U.S. specialty camera and imaging chain, on Monday filed for Chapter 11 bankruptcy protection, hurt by the recession and consumers' shift to digital photography.
The Beltsville, Maryland-based company filed for protection from creditors with the U.S. bankruptcy court in Wilmington, Delaware. Ritz said it has between $100 million and $500 million of both assets and liabilities.
Ritz operates under such names as Ritz Camera, Wolf Camera, Kits Cameras, Inkley's and The Camera Shops, and also operates the 130-store Boater's World Marine Centers chain. It said it had nearly $1 billion of revenue in the year ended Nov. 30, 2008.
In an affidavit, Chief Restructuring Officer Marc Weinsweig said the company's lenders ordered the company in January to boost reserves, thereby reducing available credit.
He said this came after the recession caused Ritz's 2008 holiday sales to be "materially lower" than a year earlier. Ritz was also hurt by losses at Boater's World, which suffered falling sales in 2008 as gas prices soared.
"The loss of revenues and profit margins from the diminution in the photo-finishing business proved too much of a burden, coupled with the losses experienced by the Boater's World business in 2008," he wrote.
Ritz said it will seek court permission to obtain $85 million of financing to keep operating while it restructures.
Among the largest unsecured creditors are Nikon Inc (7731.T: Quote, Profile, Research), with a $26.6 million claim, and Canon USA Inc (7751.T: Quote, Profile, Research), with a $13.7 million claim, the bankruptcy petition shows. (Reporting by Jonathan Stempel; Editing by Steve Orlofsky)
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Ha Ha, more like the last big storefront and mall, photo chain to bite the dust. They were buying up all the others.
Who's left? Walmart, Sam's, Costco, Frys and the others, don't count.
Glad you read the other forums. ;)
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Ha Ha, more like the last big storefront and mall, photo chain to bite the dust. They were buying up all the others.
Who's left? Walmart, Sam's, Costco, Frys and the others, don't count.
Glad you read the other forums. ;)
Doesn't Chapter 11 simply mean reorganize?
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You are correct. I think they forgot the word "Protection" after bankruptcy in the Reuters title:
UPDATE 1-Ritz Camera files for Chapter 11 bankruptcy
But if they can't work out a deal with their suppliers, they won't pull out of Chapter 11. They owe Nikon alone $26 million.
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You are correct. I think they forgot the word "Protection" after bankruptcy in the Reuters title:
UPDATE 1-Ritz Camera files for Chapter 11 bankruptcy
But if they can't work out a deal with their suppliers, they won't pull out of Chapter 11. They owe Nikon alone $26 million.
Yes, and like Circuit City, they will probably cut back stores and try to work their way out of it. In a year they could be gone.
http://www.bizjournals.com/triangle/stories/2009/02/23/daily3.html
Ritz is the nation's largest camera store chain with more than 1,000 locations in 45 states. Its retail brands today include Wolf Camera, Kits Cameras, Inkley’s and The Camera Shop.
1998: Wolf Camera Inc. said it will acquire Eastman Kodak's 449-store Fox Photo chain, which includes stores under the CPI Photo, Fox Photo, and Proex Photo name, more than doubling its size to about 790 locations nationwide. The acquisition places Wolf just below Ritz Camera Centers of Beltsville, Md., in number of stores. Ritz has about 810 locations.
1999: Wolf Camera will acquire Baltimore-based photo processor The Dark Room's 12 stores.
2001: Wolf Camera Inc., the nation's second-largest photo retailer, has filed for Chapter 11 bankruptcy.
Ritz acquired Wolf Camera Inc. for $84.7 million in 2001.
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Thing is we all use BH, OneCall, BuyDig, FM buy&sell, POTN, Calumet, Adorama - rarely do I hear of working pros going to Ritz. The rest of people are buying digicams, batteries & mem cards and never going back. lol
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My wife worked for Ritz for nearly 5 years, up until last spring when they closed her store. They have WAY too many stores in our area, and have been wisely closing quite a few. They also have been restructuring their management hierarchy, reorganizing and combining districts, etc. So, this comes as no surprise.
We stopped by one of there local stores last Friday where some of her friends still work. Their shelves were really bare! The store manager said they haven't been able to get new inventory.
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Thing is we all use BH, OneCall, BuyDig, FM buy&sell, POTN, Calumet, Adorama - rarely do I hear of working pros going to Ritz. The rest of people are buying digicams, batteries & mem cards and never going back. lol
I actually make it a point to go to the last two real photo stores, same name same owner, in this area and buy things now and then. I bought my last lens for $100 more than B&H (even though I have bought more cameras and lenses from B&H) just to make sure they don't go away. Interesting educated sales people, unlike Ritz which often has, clerks who know how to run a cash register.
When I was still shooting film, the local Black's had good people who were there for years. I'd stop in, just to say hello. The Wolf that replaced about four local stores that were owned by the big "all your store belong to us" ;) chain, was good if I already knew that I needed something fast on a Saturday night.
I agree, it's just hard for any chain to compete with the Internet and the big box stores. Remember the corner grocery store, butchers shop, hardware store or pharmacy. Maybe not, I'm kind of old, but they are all gone too. Little office supply stores and pen shops? Gone. Anyone remember when there were "service stations" for cars, with free air and more than gas, soda, snacks and lottery tickets? ;D Small family gas stations are gone.
Back to the topic. Wolf bought up everything. Kodak chain, drive through processing chains, little private multi-store locals, and finally Ritz who was taking the same path, bought Wolf. One big national chain of failed businesses, consolidated into a smaller chain of marginal operations. I'll miss Ritz, but not much. Closest camera store is about 15 miles across town. Ritz is maybe two miles. I drive the 15 miles...
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Their problem is simply too many stores...over 800 last I heard. They charge exorbitant prices but they aren't really targeting professional photographers so they can. Their bread and butter used to be the 1 hour film development but now it's all about selling 3X5 prints from memory cards for .06 a pop. I've got some good friends that work in one of the more popular stores. They are guessing that Ritz is going to clean house and close up all the losing stores but they won't go out of business by any means.
From what I've also heard, it's the boat stores affiliated with the camera stores that have really dragged the company down. Not many people buying boats right now.
Mat