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Ritz files for Chapter 11
Pixart:
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)
RacePhoto:
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. ;)
WarrenPrice:
--- Quote from: RacePhoto on February 24, 2009, 11:45 ---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. ;)
--- End quote ---
Doesn't Chapter 11 simply mean reorganize?
Pixart:
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.
RacePhoto:
--- Quote from: Pixart on February 25, 2009, 14:23 ---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.
--- End quote ---
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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