Ultimate Electronics Files Ch 11.

[rgbsyr]

There goes my tax refund

[Flatnate]

So they will liquidate completely?

I know I'm only thirty years old but it seems like in so many ways as a consumer I find myself back in the ma and pop shops that I remember being around when I was little. Sometimes I'm amazed that these places weathered it out. At least where I live our locally owned boutique store is now THE place to buy electronics if you want descent service. On top of that, it seems that outside of redbox the only place to rent a disc in town is the old mom and pop rental store by the college or the grocery store. Its 1989 all over again.

[Rob J in WNY]

Stopped by our Buffalo-area UE today and talked to one of the managers and a couple employees.

Within about eight weeks, the two month old store will be closed down. Liquidation promotion begins next week. So much for closing just the "underperforming" locations. This location posted profitability over its short time, and plans were drawn for adding another location as well. I had been looking forward to that new location, which would have been closer to my home.

I had become friends with some of the employees, who were always cheerful. I'll miss UE.

[CRMA]

I havent heard anything about the Denver branches. They are based in Thorton, which is about 15 min from Den. I wonder how many in the denver area they will close?

[toef]

Originally Posted by CRMA

I havent heard anything about the Denver branches. They are based in Thorton, which is about 15 min from Den. I wonder how many in the denver area they will close?

From what I understand, all 46 stores, nation-wide, are closing.

The owners of Ultimate Electronics have asked a U.S. Bankruptcy Court for permission to sell off its inventory and close all 46 stores...

...Ultimate Acquisition Partners LP Friday asked the U.S. Bankruptcy Court in Delaware for permission to hire Gordon Brothers Retail Partners LLC and Hilco Merchant Resources LLC as consultants to sell off merchandise and close the stores.

Ultimate filed for Chapter 11 bankruptcy on Jan. 26 asking for court protection so that it could reorganize its business and pay off its debts, which it said were in the range of $100 million to $500 million. It listed assets in the same range.
The company owes $64.8 million to GE Capital Corp., its largest secured creditor. It owes $6.1 million to its Video Products Distributors, its largest unsecured creditor.

The company told the court that a quick, organized sale of its inventory would be in the best interest of its creditors.
In court documents, Ultimate said it was driven to close because it has not secured any financing to keep its operations going, and GE Capital will not allow the electronics retail chain to use its cash collateral to buy new inventory for the stores...

...Ultimate has an agreement with its consultants to begin going-out-of-business sales no later than Feb. 12 and to finish the job no later than April 15, court documents said.

Sounds like a bummer to me. The store I went to was located in what used to be a Circuit City. It's like deja vu.

[steve1971]

I just heard about this the other day. First CC and now Ultimate Electronics. Sad because I liked going into their store. Staff was always freindly and they knew their stuff. I also got some good deals from them in the past. But its hard for small chain electronic stores to keep up with places like BB, Walmart and Target just to name a few. They have cheaper prices. Hell when I bought my BDP S570 Sears beat all their prices. Now that they are goin out of buisness it would be a great time to get some really hot deals on TV's ect. Ultimate Electronics: Fun while it lasted.

[Jim L]

They went out too just shortly after CC.

It is really sad to see the retail chains folding. There is no replacement for knowledgeable staff and demoing products in person.

It's not just the bad economy, but consumers' paradigms are changing. Now everyone shops online for the savings and convenience.

Don't know if others have heard but Borders is in bankruptcy now too.