Ultimate Electronics parent files bankruptcy to streamline operations

By Caroline Salls

Pittsburgh, Jan. 27 - Ultimate Electronics parent Ultimate Acquisition Partners, LP filed Chapter 11 bankruptcy Wednesday in the U.S. Bankruptcy Court for the District of Delaware.

Chief executive officer and secretary F. Bruce Giesbrecht said in a court filing that the company filed bankruptcy as a result of a significant downturn at some of its locations, coupled with some vendors' refusal to ship goods on open credit.

"The debtors intend to utilize the Chapter 11 to streamline their operations, close underperforming locations, negotiate more favorable leases and to otherwise improve the profitability of their operations," Giesbrecht said in the filing.

The company has requested court approval to use the cash collateral of its pre-bankruptcy lenders to fund its operations while in bankruptcy.

According to court documents, Ultimate Acquisition has $100 million to $500 million in both assets and debt.

The company's largest unsecured creditors include:

• Video Products Distributors of Folsom, Calif., with a $6.14 million claim;

• Valassis Communications Inc. of Aurora, Colo., with a $5.62 million claim;

• New Age Electronics/Synnex of Greenville, S.C., with a $5.48 million claim;

• Sony Electronics, Inc. of San Diego, with a $4.76 million claim;

• TWG Innovative Solutions, Inc. of Chicago, with a $3.87 million claim;

• Inline Media, Inc. of Denver, with a $3.11 million claim;

• GE Money Bank of Kettering, Ohio, with a $3.01 million claim;

• Monster LLC of Brisbane, Calif., with a $2.37 million claim;

• Klipsch, LLC of Indianapolis, with a $1.88 million claim; and

• Mitsubishi Digital Electronics of Atlanta, with a $1.6 million claim.

The company is represented by Campbell & Levine, LLC.

Ultimate Electronics is a Thornton, Colo.-based consumer electronics retailer. The Chapter 11 case number is 11-10245.

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