The bankrupt retailer filed a motion on Friday indicating it would begin to liquidate its assets and close all 46 stores, including six in Minnesota, because it could not secure additional funding to stay operational.
Bankrupt retailer Ultimate Electronics is going out of business and will sell off its assets and close its 46 stores, including six in Minnesota.
The Thornton, Colorado-based company filed a motion on Friday in bankruptcy court indicating that has retained two consulting companies—Boston-based Gordon Brothers Retail Partners, LLC, and Northbrook, Illinois-based Hilco Merchant Resources, LLC—to oversee the liquidation process.
According to bankruptcy documents, which were filed in U.S. Bankruptcy Court in Delaware, Ultimate Electronics was not able to secure financing to stay operational.
“[The company has] determined that an organized sale of their existing inventory in all 46 of their retail stores, utilizing a ‘going-out-of-business structure,’ is in the best interest of their estates and their creditors,” the filing stated.
Ultimate Electronics filed for Chapter 11 bankruptcy in January and listed both liabilities and assets in the $100 million to $500 million range. The company’s largest debtor is General Electric Capital Corporation, which is owed $64.8 million.
The six stores that the company has in Minnesota are in Burnsville, Woodbury, Minnetonka, Roseville, Edina, and Maple Grove. The company’s other 40 stores are spread among 15 other states, including nine in Colorado and seven in Arizona.
A Wednesday morning phone call to an Ultimate Electronics representative to find out how many employees in Minnesota will be affected once the locations officially close was not immediately returned.
Last April, local electronics retailer Best Buy Company, Inc., sued Ultimate Electronics accusing the company of making false and misleading claims in advertisements regarding Best Buy’s prices. The companies settled the suit a few months later when Ultimate Electronic agreed to discontinue the advertisements.