Ultimate Electronics files bankruptcy/going out of business

[digitalbabe]

Per Twice News:

"Ultimate Electronics To Shut Down
TWICE Staff -- TWICE, 2/7/2011
Thornton, Colo. - Ultimate Electronics has asked a U.S. Bankruptcy Court for permission to begin going-out-of-business sales this month and to close all stores by April.

According to court documents cited by the Denver Post and Syracuse Post-Standard, owner Ultimate Acquisition Partners said it has been unable to secure any financing to keep its operations going, and its lender and largest debtor GE Capital has blocked the A/V chain's request to use its cash collateral to buy new inventory for the stores.

Ultimate, chiefly held by investor Mark Wattles, said an immediate "going out of business" sale is the best way to settle its debts because the products sitting on store shelves will lose value over time.

The company plans to hire Gordon Brothers Retail Partners and Hilco Merchant Resources as consultants to sell off merchandise and close the stores. "

 

[Off_contstantly]

That's crazy. We've got a few of their stores here in St. Louis.

 

[digitalbabe]

Yeah, I just started hearing about them, via forums...

 

[Off_contstantly]

I've never bought anything from them, but if the prices are right during the sale, I might. When Circuit City went under, I checked out their sale, but they raised their prices, and then put on their "Going Out Of Business" discount on that price. You were essentially buying stuff at regular price.

 

[digitalbabe]

Yeah, the Circuit City sale was only good about 1 week before, they had Blu-Rays and PS3 accessories for 80% off, so they were only $2 or less,but selling for $15+. Usually a third party company comes in and takes care of the sale-marking everything up, then down, like you said. Unless you know exactly what the "street" price is, people get taken for a ride, for sure...

 

[Horhay]

hahaha typical Circuit City, they did that even when they were still open regularly. I used to work for them. Their practices is what got them in the hole and even in face of bankruptcy they still didn't fix their problems.