Ritz Camera Chapter 11
Nomen Nescio
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By Dawn McCarty and Erik Larson
Feb. 23 (Bloomberg) -- Ritz Camera Centers Inc., the largest camera-store
chain in the U.S., filed for bankruptcy protection, blaming the deepening
U.S. recession and the consumer transition to digital photography.
The 91-year-old company, which had sales of almost $1 billion in 2008, has
both assets and debt of less than $500 million, according to Chapter 11
papers filed yesterday in U.S. Bankruptcy Court in Wilmington, Delaware.
Ritz sought court permission to tap a new $85 million loan from existing
secured lenders.
Ritz has about 800 locations in more than 40 states, including the Ritz
Camera chain, Wolf Camera, Kits Cameras, Inkley's and the Camera Shops. The
Beltsville, Maryland-based company suffered from a drop in photo printing,
as well as slumping sales at its 130 Boater's World Marine Centers, which
were hurt by last year's record oil prices, court papers show.
The advent of digital photography, which ended "enormous profits" from photo
finishing, "proved too much of a burden, coupled with the losses experienced
by the Boater's World business," Marc Weinsweig, the closely held company's
chief restructuring officer, said in court papers.
Ritz's debt includes $47.7 million on a secured revolving credit agreement
and $13.1 million owing on subordinated debentures, court papers show.
Including letters of credit, the bank debt increases to $54.5 million.
Wachovia Bank NA is the agent for the lenders.
Boater's World
Ritz officials sought to diversify their business by launching Boater's
World, a boating-and-fishing supply retailer, in 1987. The stores are
located from Maine to Florida and also in Texas, California, Oklahoma,
Tennessee and Nevada, according to the unit's Web site. The rise in fuel
prices helped lead to a "sharp" drop in sales at the unit's stores,
Weinsweig said in the filing.
Ritz in 2001 acquired Wolf Camera, the second-largest U.S. camera-store
chain with 500 locations in 20 states, for about $85 million. Wolf filed a
liquidating Chapter 11 plan that paid the secured bank lender about 50 cents
on the dollar, while unsecured creditors received nothing for their $100
million in claims.
Ritz's 30 largest unsecured creditors without collateral backing their
claims are owed about $65.6 million, court papers show. The two biggest
unsecured creditors are Nikon Inc., owed $26.6 million, and Canon USA Inc.,
owed $13.7 million. Ritz owes another $8.4 million to Fuji Photo Film USA
Inc., whose affiliate invested about $197 million in Ritz between 1996 and
2001, according to court papers.
Benjamin Ritz opened his first portrait studio in 1918 on the boardwalk in
Atlantic City, New Jersey. Twenty years later, Benjamin's younger brother,
Edward, opened their first photo processing lab in Washington and later
expanded to Baltimore. The company's wider expansion began in 1969 under
Edward's son, David.
The case is Ritz Camera Centers Inc., 09-10617, U.S. Bankruptcy Court,
District of Delaware (Wilmington).
To contact the reporters on this story: Dawn McCarty in Wilmington, Delaware
at dmcc...@bloomberg.net; Erik Larson in New York at
elar...@bloomberg.net.
Last Updated: February 23, 2009 11:00 EST
Paul Furman
> Ritz Camera Centers Files for Bankruptcy Protection (Update2)
I just checked one particular lens & it was not priced competitively...
normally they do have good pricing on newly released mail order gear.
--
Paul Furman
www.edgehill.net
www.baynatives.com
all google groups messages filtered due to spam
GregS
>Nomen Nescio wrote:
>> Ritz Camera Centers Files for Bankruptcy Protection (Update2)
>
>I just checked one particular lens & it was not priced competitively...
>normally they do have good pricing on newly released mail order gear.
>
As it turned out, I was camcorder shopping about 5 years ago and Ritz had the cheapest
price of anyone. As it turned out I got a good camera before they started to make
them too small. great audio too.
I shopped Ritz as a beginning photographer around 1974. Great deals on old paper.
I also remember going in the main store/office near DC around 1974.
After they messed up some test shots for my brothers wedding out of my camera, I took
the film somewhere else. At a time, their big prints were pretty hot.
Recently I bought a Fujifilm FinePix S2000HD at Best Buy at Christmas for $233
and Circuit City has them now for $195, great buy. 30% off list. Circuit City had
high prices kinda like Ritz.
Ritz wanted about $300 at Christmas.
greg
tony cooper
wrote:
The Circuit City in this area is closing, and all merchandise is
marked down to at least 30% off. At 30% off, they are still not
competitive. When you add in the 7% sales tax in the area, they are
even less competitive.
--
Tony Cooper - Orlando, Florida
measekite
They were not price competitive with other sources. They saw the roses
but refused to smell them.
Andrew Koenig
news:gnv5sv$qm0$1...@reader.motzarella.org...
> Ritz Camera Centers Inc., the largest camera-store
> chain in the U.S., filed for bankruptcy protection, blaming the deepening
> U.S. recession and the consumer transition to digital photography.
Um, yeah, that's right.
> Ritz has about 800 locations in more than 40 states, including the Ritz
> Camera chain, Wolf Camera, Kits Cameras, Inkley's and the Camera Shops.
I wonder how much their total volume compares with Internet sales.
> The advent of digital photography, which ended "enormous profits" from
> photo
> finishing, "proved too much of a burden, coupled with the losses
> experienced
> by the Boater's World business, ..."
And of course no one could have foreseen the loss of profits from photo
finishing.
> Boater's World
> Ritz officials sought to diversify their business by launching Boater's
> World, a boating-and-fishing supply retailer, in 1987. The stores are
> located from Maine to Florida and also in Texas, California, Oklahoma,
> Tennessee and Nevada, according to the unit's Web site. The rise in fuel
> prices helped lead to a "sharp" drop in sales at the unit's stores,
Gee, no one could have foreseen that either, even though fuel prices were
substantially trailing inflation for most of that time. Right?
> Ritz in 2001 acquired Wolf Camera, the second-largest U.S. camera-store
> chain with 500 locations in 20 states, for about $85 million. Wolf filed a
> liquidating Chapter 11 plan...
Hmm. 800 minus 500 is 300. So a company with 300 stores buys a company
with 500 stores that is going bankrupt, and think everything is going to be
just fine? In 2001, with the digital transition already well under way?
Is this bankruptcy really such a shock?
C J Campbell
> Ritz Camera Centers Files for Bankruptcy Protection (Update2)
>
> Email | Print | A A A
>
>
> By Dawn McCarty and Erik Larson
> Feb. 23 (Bloomberg) -- Ritz Camera Centers Inc., the largest camera-store
> chain in the U.S., filed for bankruptcy protection, blaming the deepening
> U.S. recession and the consumer transition to digital photography.
What, they bet the company on film processing or something?
More likely they were unable to compete with Best Buy, Wal-Mart, and
Costco. Not to mention the Internet. Ritz always seemed to charge a
little more for an inferior selection and ignorant sales people. I want
ignorance, I can go anywhere. Ritz had no competitive edge, and they
could not compete on price.
--
Waddling Eagle
World Famous Flight Instructor
Paul Bartram
"Nomen Nescio" <nob...@dizum.com> wrote
> Feb. 23 (Bloomberg) -- Ritz Camera Centers Inc., the largest camera-store
> chain in the U.S., filed for bankruptcy protection, blaming the deepening
> U.S. recession and the consumer transition to digital photography.
Well if nothing else, this recession is going to 'thin the herd', removing
the weaklings, and inefficient businesses won't survive. So, when it's all
over, what's left will be strong, competitive and efficient firms. Bad news
for employees and investors (myself included, where did my shares go?) but
maybe good news for future customers.
Paul
Ray Fischer
>Ritz Camera Centers Files for Bankruptcy Protection (Update2)
[yadda yadda]
>The advent of digital photography, which ended "enormous profits" from photo
>finishing, "proved too much of a burden, coupled with the losses experienced
>by the Boater's World business," Marc Weinsweig, the closely held company's
>chief restructuring officer, said in court papers.
Another example of how screwing the customer ends up being a bad
long-term business strategy.
--
Ray Fischer
rfis...@sonic.net
bowser
"tony cooper" <tony_co...@earthlink.net> wrote in message
news:qc46q41sn4jnksmnf...@4ax.com...
Just saw a news story (Boston area) about a woman who bought a flat screen
TV, paid over a grand, and when she unpacked it, it was smashed. The screen
was literally cracked and broken. It's worthless. No warranty coverabe, and
CC says all sales are final and won't take it back. If you buy anything from
CC, plug it in before you leave the store.
