Judge oks Ultimate Electronics' CEO to buy 32 stores and SB Capital to liquidate 30

By Ted A. Knutson

Washington, April 19 - Judge Peter J. Walsh of the U.S. Bankruptcy Court for the District of Delaware approved a winning bid by Ultimate Electronics, Inc. chairman and chief executive officer Mark Wattles to buy and operate 32 of the company's stores and for SB Capital Group to liquidate the inventory of the remaining 30, Laura Davis Jones, an attorney for the company told Prospect News.

The judge also gave his assent to a back up plan to have SB Capital hold going out of business sales for all of the stores in case the Wattles deal falls through. The sale to the CEO is scheduled to close Wednesday.

Ultimate held an auction for the stores April 14 and 15. Great American Group was the stalking horse bidder for the liquidation of the entire chain.

On Friday, Wattles disclosed to the Securities and Exchange Commission he had made a bid of $47 million for the 32 stores.

The value of the SB Capital bids was not available at press time.

Ultimate Electronics filed for Chapter 11 on Jan. 11. Its case number is 05-10104

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