Bankruptcy reorganization begins Saturday
Ritz Camera Centers Inc. will liquidate up to 400 retail camera stores beginning Saturday. The move is part of a bankruptcy reorganization that is being supervised by the court. Wolf and Kits cameras are owned by Ritz, so many of those stores will be affected.
Time for liquidation sales
The “going out of business” sales will start Saturday as the first step toward shuttering the stores. Don’t run out and get payday loans yet, though. There is some debate about whether merchandise will really be discounted deeply enough to justify that.
CNET says “I wouldn’t expect huge discounts.”
Beware the liquidation sale
As we have learned from previous posts, liquidation sales are not always what they seem. By the time the liquidation sale hits, the firm overseeing the sale has already paid for the merchandise and is looking to make as much profit as possible. They often use the highest retail price listed for an item as a baseline for discounts.
About the company
Ritz Camera is a privately held company and the largest camera retail chain in the United States. The chain is made up of more than 1,000 stores.The company has been around since 1918. It acquire Wolf Camera Inc. in 2001, after Wolf went bankrupt. Ritz filed for Chapter 11 bankruptcy protection in late February.
The bankruptcy deal
The court ruled that the bidding procedures Ritz outlined for the stores to be liquidated are fair. Also, Ritz is borrowing $85 million from Wachovia bank. Liquidation firms have already placed bids to oversee the sales.
Sticking around
Ritz Camera will still operate hundreds of stores in the U.S. And, like most modern retailers, you will still be able to order Ritz products online. Ritz’s other store brands, Besides Wolf and Kits, currently include Inkley’s and The Camera Shop.
I guess this isn’t too surprising. It is most certainly unfortunate, but last year’s holiday season was a beginning to a big slow down on non-essential consumer items, and electronics (like cameras) were a part of that. It doesn’t make a pretty picture for those sort of trends to develop.