What is Ritz Camera bankruptcy?
Posted by fybmanager20 at September 16th, 2009
Ritz Camera Centers Inc, highly skilled in imaging and photography is the largest camera store chain in United States. Ritz took refuge in Chapter 11 bankruptcy in February, 2009 to reorganize its business operations. Ritz operates under different names like Ritz Camera, Inkley’s, Wolf Camera, Kits Camera, The Camera Shops. In addition to the camera stores, it is also involved in supplying boats and this section operates under the banner Boater’s World. The total number of stores under its banner is around 1000. This figure was recorded before it filed bankruptcy. Ritz is based in Beltsville, Maryland. Last time the company declared bankruptcy was way back in
2001 after which it bought Wolf Camera.
What led Ritz to file Chapter 11 bankruptcy?
Company officials state that there was more than one reason to file bankruptcy. The main reason was credit crisis. Due to reduced consumer spending sale of products dropped noticeably. The rise in gas prices also aggravated the problem.
The main creditors in Ritz Camera bankruptcy
The company declared that its assets as well as liabilities amounted to USD$500 million each. Ritz Camera’s bankruptcy reports reveal that the main creditors in the bankruptcy proceedings are
- Nikon – Ritz owed approximately USD$26.6 million at the time of filing bankruptcy
- Fuji Photo Film – The company owed USD$8.4 million
- Canon – This company is entitled to receive USD$13.7 million in payments from Ritz.
Quoting Marc Weinsweig, the Chief Restructuring Officer “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”.
Ritz sought court permission to get USD$85 million in financing so that it could continue its operations while the reorganization plans were underway.