Ritz Camera to Shut Down Hundreds of Stores

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. ... click here to read the rest of the article titled "Ritz Camera to Shut Down Hundreds of Stores"