Ritz Camera Files for Bankruptcy Protection

Beltsville, Md. Hurt by a soft economy and consumers’ shift to digital photography, Ritz Camera Centers is the latest company to file for Chapter 11 bankruptcy protection.

The retailer, which filed for protection in U.S. Bankruptcy court in Wilmington, Del., on Monday, reported that it had nearly $1 billion of revenue for its fiscal year ended Nov. 30, 2008. However, the company’s lenders ordered Ritz to boost reserves, a move that reduced the company’s available credit.

An affidavit from chief restructuring officer Marc Weinsweig stated that the recession caused Ritz's 2008 holiday sales to be "materially lower" than a year earlier. Ritz was also hurt by losses at its Boater's World Marine Centers chain, which struggled to stay afloat as gas prices soared.

Ritz’s largest unsecured creditors are Nikon Inc., which has a $26.6 million claim, and Canon USA, which is owed $13.7 million, according to a report by Bizjournals.com. The company plans to continue operating its approximately 1,000 locations as it undergoes its restructuring plan.