Update Published 5/11/09:
Hilco Real Estate is advertising 77 of Ritz Camera's leases for sale. The stores range in size from 711 to 10,000 square feet and are located in 23 U.S. states.
Update Published 3/30/09:
On Mar. 20, 2009, Hilco Merchant Resources and Gordon Brothers Group announced that liquidation sales commenced at all 129 stores that are part of bankrupt Ritz Camera's Boater's World chain. The two won the right to liquidate the inventory and fixtures at bankruptcy auction and estimate inventory value at $100 million.
According to CoStar Tenant, the typical Boater's World is between 6,000 to 12,000 square feet.
For a full list of closing stores, click here.
Update Published 3/13/09:
Ritz Camera announced that it plans to commence liquidation sales at 400 of its 800 camera/photo stores, which operate under banners including Ritz Camera, Wolf Camera, Kits Camera, Inkley’s, and The Camera Shop.
Additionally, Ritz is seeking a buyer of its Boater's World chain, but if no buyer emerges, the retailer plans to liquidate all the assets related to the 137 Boater's World stores.
According to CoStar Tenant, the typical Ritz or Wolf store is 1,625 square feet, while the typical Boater's World is usually between 6,000 to 12,000 square feet.
Bankruptcy Announcement Published 2/23/09:
Ritz Camera, the country's largest chain of camera/photography stores, has filed bankruptcy. The company listed assets and liabilities between $100 million and $500 million in its filing. The company's sales, much of which were based on photo processing, have been on the decline since digital cameras have been on the rise.
The company operates about 800 stores in 40 states under brands Ritz Camera Centers, Wolf Camera (Ritz acquired Wolf out of bankruptcy in 2001), Kits Camera, Inkley's and The Camera Shops. Additionally, the company operates about 137 Boater's World stores -- both businesses sell primarily discretionary goods that have been hampered by the down economy.
Ritz has secured an $85 million credit facility with its existing lenders to continue operating business as normal during bankruptcy proceedings.
Ritz foreshadowed, but did not officially announce any store closures, saying its challenges include "unprofitable store leases." According to CoStar Tenant, the typical Ritz or Wolf store is 1,625 square feet.
This article appears in CoStar's Retail News Roundup: Feb. 22 to 28, 2009, CoStar's weekly column covering expansions, new concepts, store closings, bankruptcies, cutbacks, acquisition, mergers, sales, loans, shopping center development activity, personnel changes, sustainability, green building, and more in retail real estate.
This week in the Retail Roundup, CoStar reports on
expansions or new concepts at Whole Foods, CVS, Denny's, and Giant Eagle;
new retail development news in Memphis and Santa Monica;
acquisition, merger, loan or sale activity at Burnham USA;
closings, cutbacks or bankruptcies at Ritz Camera, S&K Menswear, Bruno's Supermarkets, Borders Books, Auto Dealerships, and more;
personnel announcements at Gast Retail and Eddie Bauer;
green building at Starbucks, and more.