Cameraphilles rejoice: liquidation sales at the electronics retailer are poised to surge after Ritz Camera filed for bankruptcy in Wilmington over the weekend. The bankrupt company put itself on course for self destruction when it paid $85 million to buy Wolf Camera out of bankruptcy in 2001, only to see itself suffer the same fate 8 years later. Ritz' DIP comes as always from existing lenders, specifically Wells Fargo, CIT and Bank of America, who had no desire to be primed by some other new fancy hedge fund, and gave Ritz a $75 million DIP.Ritz had expanded significantly in the bubble economy, hitting $1 billion in annual revenue, growing to 800 stores in 40 states.
Major vendors Nikon, Canon and Fuji are each owed $26.6, $13.7 and $8.4 million as per the filing, likely meaning that Nikon D300 camera you have had your eyes set on for months will soon see a 50% sticker attached.
Readers who have gift cards with Ritz may be advise to use them quickly before they become categorized as general unsecured claims.
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6 comments:
Talk about a snap shot of the economy........:-((
Wow...the heads continue to roll. And now we won't even have cameras to take pictures of it....
So what happens to my extended service plan? Is it a wothless piece of paper since Ritz is self insured?
if it is a non OEM backed guarantee you are out of luck
wow, you got it all wrapped up huh? they're not going out of business. Chapter 11, hello?
you're just trying to scare people. just what people need now, more people yelling "the sky is falling!!"
>>>Nikon D300 camera you have had your eyes set on for months will soon see a 50% sticker attached.<<<
Don't count on it. This the cheapest company I've ever seen. I think you'll be lucky to see 20%, and that on the possibly ONE unit they may have in stock.
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