Ritz Camera Files for Chapter 11 Bankruptcy

Ritz Camera Centers Inc., one of the nation's largest camera stores, has filed for Chapter 11 bankruptcy.

Ritz suffered profit losses in part due to the digital revolution, the poor economy, and severe losses by Boater's World, a subsidiary of Ritz Camera Centers Inc.  Ritz, which operates 1,000 stores in 45 states and employs 6,400 workers, also operates under the name Ritz Camera, Wolf Camera, Kits Cameras, Inkley's, and The Camera Shops.

In late 2007, the company borrowed $200 million from a group of lenders, and amongst other debts they still owe more $47 million.  Although Ritz posted sales of $1 billion in 2008, the company will still be in danger of having to shut down operations if it is unable to secure interim financing approval.

Ritz said it plans to continue operation as it seeks reorganization under Chapter 11 bankruptcy.

In the bankruptcy filing, Ritz's chief restructuring officer Marc Weinsweig said, "The loss of revenues and profit margins from the diminution in the photo-finishing business proved too much of a burden, coupled with the losses experienced by the Boater's World business, for Ritz Camera to remain a profitable company under its current structure."

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