Ritz filed bankruptcy

[Digigeek]

Reuters reported today that Ritz Camera filed Chapter 11:

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)


© Thomson Reuters 2009. All rights reserved. | Learn more about Thomson Reuters

[groovyone]

Interesting. I wonder how much money they spent on rebranding stuff to Quantaray.

[ChrisO]

How did the shift to digital just now hurt them? The ones I've been to haven't carried film in years. If anything, it should save them money not having to develop the film.

[Sonny]

who in the hell ever buys equipment from them anyways? They were so overpriced...it ain't funny!

I use them to print my personal photos. There is one in front of my neighborhood.

[ChrisO]

I bought a light stand from them once in an emergency. I took it up the rear pretty hard. I imagine that's how they sell most of their stuff. lol

[groovyone]

Originally Posted by ChrisO

I bought a light stand from them once in an emergency. I took it up the rear pretty hard. I imagine that's how they sell most of their stuff. lol

Yeah, I had to snag a bag and card from them before a surprise trip to Vegas. That kinda hurt.

[kenmyers70]

Originally Posted by ChrisO

I bought a light stand from them once in an emergency. I took it up the rear pretty hard. I imagine that's how they sell most of their stuff. lol

They actually had a light stand? I tried to find a umbrella bracket there and they didn't even carry them. Useless.

[d2creative]

Originally Posted by Digigeek

Ritz said it will seek court permission to obtain $85 million of financing to keep operating while it restructures.

Not if I was the court.

[JohnT]

My local Ritz/Wolf sells film and develops it. I've bought only a couple of small items of them, and they're never busy when I drive by the store. That should tell them something.

[ChrisO]

Originally Posted by kenmyers70

They actually had a light stand? I tried to find a umbrella bracket there and they didn't even carry them. Useless.

Yup, one. For $80. I use it to hold up flags now, it's about all it's good for.

[Tom]

I know someone that works for them, and he tells people that they can get it cheaper with no tax at amazon/bh/adorama.

Wonder why they are out of business.

[BigC]

Thank God! I thought it was the cracker company.

[alamoshutterbug]

Originally Posted by bigc

thank God! I Thought It Was The Cracker Company.

Lol

[Steelsun]

If you shop prudently, you can get good deals from them.

I've bought 3 bags from them (2 for me, one for my wife) that were all good deals and well worth it. Also have bought some slave flashes for $25 each that were/are worth it (tempted to go get some more while they are around).

[MHampton]

It's my fault. I knew I shouldn't have used my NYIP 7% discount when I ordered my 5d mkII before Christmas. <oops>