Ultimate Electronics Has Gone Out of Business in Apr 2011: Complete Story
Once upon a time Ultimate Electronics had their store running in as much as 20 cities in United States. But like we say nothing is permanent, they filed bankruptcy in early 2011, closing down all stores.
Employees at Ultimate electronics received an email that was quite alarming. The e-mail informed them that they would soon be closing the 46 stores all over the country. Some of the areas that would be affected by this change included Fairview Heights, Ballwin, St. Peters and Fenton. Channel 5 confirmed it after finding out that the company had filed bankruptcy asking for permission to start liquidation on these stores.
While the personnel higher up in rank kept their mouths closed to the media and customers, some employees decided to spill the beans, because they felt that the people who have been loyal to them should know. With the court’s permission, the company will be able to pay off the debt of over $64 million that they owe their creditors.
They could also reorganize their business and sell off the rest of the inventory. However, Judge Mary Walwrath would have to approve a quick liquidation sale so that the items left in inventory would not lose their value, which she did. The going out of business sale began in early February allowing customers to receive up to 30% off on some of their favorite items.
Consumers were informed that they would have to use any gift cards that they were saving from the company and do refunds and exchanges by or on Feb 11, 2011. After this time, all sales were considered to be final. Ultimate Electronics had just expanded to Colorado and Massachusetts not even a whole year ago, and they are already closing their stores down.
Because Ultimate Electronics employs over 14,000 people, it tried filing for chapter 11. This route would have given them the time to reorganize the business and come up with a plan that would have helped it get back on its feet. They were even thinking about moving along but just downsizing into a smaller but stronger company. While they were looking to just get rid of their unprofitable stores, they could not obtain leases that would be more favorable and help them save some money.
The Gordon brothers comment that trying to go up against Best Buy is a real fight that Ultimate Electronics is just not prepared for. Besides, when it came to marketing, the company did not do much to obtain real results. Many people are wondering how Hewlett Packard feels about this whole liquidation process considering they owned 25% of business.
Ultimate has put up a fight to stay open for 40 years, and even now as the CEO of Ultimate, Bruce Geisebrecht comments, their commitment to their customers is the most important. A lot of customers who have warranties still on their merchandise seemed a little bit worried about the stores closing. However, a press release made it clear that those warranties would remain in effect until their expiration date.
Ultimate has made a lot of people happy over the years, and maybe it’s just time for them to take a break. Who knows; they might decide to make a grand comeback.