Bankrupt electronics chain Ultimate Electronics Inc. plans to put all 62 of its stores on the auction block to raise cash for creditors.
Gregg Galardi, attorney for the Thornton, Colo.-based company, said at a court hearing Friday that Ultimate Electronics hadn't abandoned efforts to reorganize, but said no one, including the company's new chief executive, Mark Wattles, is willing to finance the retailer as a going concern right now.
As a result, Ultimate Electronics wants to auction liquidation rights for all of its stores, to see whether a total sell-off will produce more money for creditors than a funded reorganization.
Ultimate Electronics listed assets of $329 million and debts of $160 million in the Chapter 11 petition it filed in Delaware in mid-January.
The distressed retailer will take bids from liquidators first on the 30 stores that it originally planned to sell off and shut down as part of a reorganization. That auction is expected to be held Thursday.
Liquidator Great American Group has offered to start the bidding for the 30-store group at 71.9 cents on the dollar of inventory.
Following the bidding on the 30-store group, Ultimate Electronics will put all 62 stores on the block.
Great American is also proposed as the lead bidder on the 62-store chain at 75.5 cents on the dollar.
Galardi said the company expects rival electronics retailers, real estate interests and joint ventures to enter the auction.
Ultimate Electronics Inc.
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