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Ritz Camera files for bankruptcy; seeks $85m loan

Posted by Teresa Hanafin, Boston.com Staff February 24, 2009 07:49 AM
 
RitzCamera.jpg
Photo by Justin Sullivan / Getty Images

Bloomberg News

Ritz Camera Centers Inc., the largest camera store chain in the United States, has filed for bankruptcy protection, blaming the deepening US 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 Sunday in US 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.

According to its website, in Boston, Ritz has stores in Government Center, Beacon Hill, and Copley Square. Other Massachusetts locations include Cambridgeside Galleria in Cambridge, Brookline, the South Shore Plaza in Braintree, the Metro North Retail Center in Woburn, the Burlington Mall, the North Shore Mall in Peabody, the Derby Street Shops in Hingham, the Natick Mall, the Hanover Mall, the Port Plaza Shopping Center in Newburyport, the Independence Mall in Kingston, the Emerald Square Mall in North Attleboro, the Silver City Galleria in East Taunton, the Greendale Mall in Worcester, Library Square in Falmouth, and the Cape Cod Mall in Hyannis. It has several stores in other New England states as well.

The Beltsville, Md.-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 chief restructuring officer for the closely held company, 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.

Ritz officials sought to diversify 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 website.

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2 comments so far...
  1. Probably because they have the most outrageous prices on the planet.

    Posted by Chris February 24, 09 09:51 AM
  1. I think it’s a sad day for the art of photography. No, I don’t think it hinges only on the migration to digital photography; it has all to do with managing change in the way we interpret beauty in light through a dark chamber. The way we share it, how we capture it, and how passionate we are about it. You think Monet or Van Gogh were painting to sell pieces of canvas for millions of dollars? That was landscape photography then and this is now. If you want to see a self taught master photographer's work, view a Peter Lik gallery. Words that only echo my own at times it’s scary. He wants to stop the world from spinning so fast, even for the briefest moment to share this great world around us.

    First and foremost, in a tight economy that’s driven by consumer confidence, it’s the clear lack of disposable income. Just today I read an article on the New York based conference board. The consumer confidence index has fallen to its lowest point since its measure in 1967. Bottom line is food on the table as you can’t eat images.

    This reminds me of a parallel conversation I had with Ernie Santosuosso, a former employee of the Boston Globe. Sure as heck I didn’t know him from Adam but I’m very much like him a talker. I also have wide ears for my elders as everyone should. The conversation ended about an hour and a half later. Well after my store had closed discussing writing, photography, and the many people he has met. He talked of a time when photography was celebrated as a mirror to his writing about sports, music and life. Really, Teresa Hanafin, you have to interview this guy and take his photos. The only thing constant in this life is change, in everything, and how fast we can adapt.

    I spent the weekend digesting only several of his stories hanging with the Rolling Stones, Elvis, Frank Sinatra, and many more. The conversation ended the same way about the migration of newspaper to online media. What have we lost in this immediate society over the years. I have another link to newspaper media that I don’t even want to comment on. Let’s just say the lack of circulation means less reporting jobs in the Bay State.

    “This is a trend in consumer electronics including specialty shops like Ritz. Not only the big guys, do you recall on RAW the article about smaller family shop closures.”

    My final note on what this article missed on. The growing online gray market area, eBay, Amazon, Craigslist, and many more. Why doesn’t anyone mention that…? You can buy a lens online sometimes for half price. You can find a used camera 75 percent off, these prices do exist. Why do you think the government wants to start an online tax for goods transferred? People are like water they will find the lowest price in a tough economy. Why do people now thrive in a barter system? Why are small towns trying to print their own money in America?

    My heart goes out to all those people who are losing their jobs in America; I have been there in different vocations now obsolete. Most of them on the front line are photographers forced to work in those places to make ends meet. Never give up on what you love at least maintain the art. I also find myself lucky knowing I only do it for me and my close friends. I will always push whatever I can to professionals who depend on that income.

    Posted by Brian Pitcher February 24, 09 01:20 PM
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