Ritz Camera & Image LLC did not find a buyer in a bankruptcy auction to keep the 94 year old company from going out of business.
On Monday, a bankruptcy judge confirmed a plan to turn-over most of its assets to Hilco Merchant Resources LLC and Gordon Brothers Retail Partners LLC, which are liquidation specialists. According to court records, they were high bidders at the auction.
According to court documents, the company did not receive an offer to buy all of its assets. Ritz considered selling to the liquidators to acquire the greatest amount possible.
C&A Marketing Inc. bought Ritz’s websites and some of its largest stores. The New Jersey-based online retailer said it intends to retain five to seven stores open.
The remaining 137 Ritz stores will be closed.
The company filed for bankruptcy on June 22, almost three years after it got out from bankruptcy under the management of David Ritz, son of its founder Edward Ritz.
Ritz has struggled to stay afloat in the recent years with limited funds and liquidity, caused by consumers shifting toward digital cameras and photo-sharing, which resulted in the decline of photo processing in stores.
Ritz’s attorneys did not respond to requests for comment right away.
In 2009, the founding family of Ritz Camera brought the chain of stores out of bankruptcy. They tried to reorganize the business, mostly by raising new capital and refinancing. Ritz had approximately 375 outlets after completing an earlier bankruptcy. In its most recent bankruptcy, it had 265 stores across the country. In June, the company had approximately 1,960 employees.
On Monday, Eastman Kodak Co unveiled its plan to lay off 1,000 employees, in addition to 2,700 that had been laid off this year, after getting low offers at a bankruptcy auction of its patents. Its CEO and CFO are said to be departing from the company.
- After receiving a discharge, you may be wondering if you can file for bankruptcy again. Ask a Debt Relief Attorney regarding the time limits for getting a bankruptcy discharge after receiving a discharge.