Ritz Camera & Image files bankruptcy to improve cash, restructure debt

By Caroline Salls

Pittsburgh, June 22 - Ritz Camera & Image, LLC filed Chapter 11 bankruptcy Friday in the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, RCC Liquidating Corp., formerly Ritz Camera Centers, Inc., emerged from a previous Chapter 11 bankruptcy case in June 2010.

Under that case, the company sold substantially all of its assets.

According to a statement filed with the court Friday by chief restructuring officer Marc Weinsweig, Ritz Camera & Image made "significant strides" since its formation in 2009 to move toward profitability.

However, Weinsweig said the company was "restrained by a lack of sufficient liquidity and capital to sustain its operations with its current store count."

As a result, Weinsweig said Ritz filed bankruptcy to reject its unprofitable leases, improve cash flow and restructure its debts.

DIP financing

In conjunction with the bankruptcy filing, Ritz Camera has obtained a commitment for $20 million in debtor-in-possession financing. Crystal Financial LLC is the administrative agent and collateral agent.

The DIP facility consists of a $15.89 million senior secured revolving credit facility and a $4.92 million term loan.

The company is seeking interim access to $4 million of the DIP financing.

The facility will mature on the earliest of Nov. 9, the date of confirmation of a plan of reorganization or closing of a sale of substantially all company assets.

Interest will be Libor plus 1,000 basis points.

Debt details

Ritz Camera & Image listed $50 million to $100 million in both assets and debt.

The company's largest unsecured creditors are Nikon Inc. of Melville, N.Y., with a $2.42 million trade debt claim and Sony Corp. of America, based in Chicago, with a $1.47 million trade debt claim.

The company is represented by Cole, Schotz, Meisel, Forman & Leonard.

Ritz Camera & Image is a Beltsville, Md.-based specialty camera and image chain. The Chapter 11 case number is 12-11868.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.