Ultimate Electronics Inc. to close its stores in Utah

0 Comments | Deseret News (Salt Lake City), Mar 25, 2005

THORNTON, Colo. (AP) -- Consumer electronics retailer Ultimate Electronics Inc. will lay off more than 25 percent of its work force and close nearly half its stores, including those in Utah, as part of a bankruptcy reorganization.

Ultimate Electronics received a default waiver from its lender which provided most of the reorganization financing, according to a Securities and Exchange Commission filing on Wednesday.

A telephone message seeking additional comment was not immediately returned Thursday.

The announcement occurred about a month after Mark Wattles, 44, former head of the Hollywood Entertainment video chain, was named chairman and CEO of Ultimate Electronics.

The retailer, which operates 62 stores in 14 states, said it would close 30 stores in Iowa, Missouri, South Dakota, Texas and Utah, by June 30.

About 965 employees will be affected by the closures, including 65 central office employees.

It plans to continue to operate 32 stores in Arizona, Kansas, Minnesota, Missouri, Nevada, New Mexico and Oklahoma. The filing did not mention stores in Colorado, which operate under the SoundTrack name, or in Idaho and Illinois.

Previously, Ultimate Electronics said it would close three stores.

Ultimate Electronics filed for Chapter 11 on Jan. 11, a day after Wattles spent $4.4 million to acquire a controlling interest and loaned the company $5.6 million.