DENVER (AP) — Colorado-based Ultimate Electronics has filed for Chapter 11 bankruptcy in its second trip to bankruptcy court in six years.
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 under-performing 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.
(TM and © Copyright 2011 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2011 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)