Posted: Jan 28, 2011 5:19 AM by Bea Karnes
Updated: Jan 28, 2011 5:20 AM
DENVER (AP)-Colorado-based Ultimate Electronics has filed for Chapter 11 bankruptcy in its second trip to bankruptcy court in six years.
The Denver Post reports that the company filed for bankruptcy Wednesday in Delaware. The firm's parent company, Ultimate Acquisitions LP, said the filing was based on a "significant downturn" in sales at some stores and the refusal of some wholesalers to supply merchandise on open credit.
The Thornton-based company's largest secured creditor is General Electric Capitol Corp., which is owed $64.8 million.
The company says it plans to streamline operations, close underperforming stores and negotiate more favorable leases. It operates 46 stores in 12 states, including nine in Colorado, and employs 1,500. The company hasn't said which stores will be closed.