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 AV 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.
