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Ultimate Electronics

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Ultimate Electronics
Company typePrivate
IndustryRetailing
Founded1968
DefunctApril 15, 2011
FateDefunct
HeadquartersThornton, Colorado, USA
Key people
Mark Wattles
ProductsConsumer electronics

Ultimate Electronics was a chain of consumer electronics stores[1] which filed for bankruptcy twice after 2006, liquidating and ceasing operations in 2011.[2][3][4] At its peak, the store operated in Arizona, Colorado (where it originated as Pearse Electronics), Illinois, Iowa, Idaho, Kansas, Minnesota, Missouri, Nevada, New Mexico, Oklahoma, Oregon, Massachusetts, New Hampshire, New York, South Dakota, Texas, Pennsylvania, Utah, and Wisconsin. It was originally incorporated in the state of Delaware with principal offices in Thornton, Colorado. They only ever opened 78 locations in 20 states. Some of the stores had neon signs at the front of the store with a ball decoration like the one at Olde Towne Plaza in Ballwin, MO.

History

Early history

Stores originally operated under other various names, including SoundTrack Colorado and Audio King Minnesota, Iowa, and South Dakota.[5]

Ultimate began a large expansion campaign in 2000. By 2004, the company had doubled its store count to 64.

Closure

In 2005, the company filed for bankruptcy. Hollywood Video founder and then–CEO Mark Wattles acquired 32 stores in the ensuing bankruptcy auction; the remaining half were closed.[6] Ultimate Electronics was then a privately owned company operated by Ultimate Acquisition Partners, L.P. Ultimate Acquisition Partners, L.P was a division of Wattles Capital Management, LLC.[7] Wattles Capital Management owned 71% of Ultimate Electronics, while Hewlett-Packard Co. owned 25%.[8] The other 4% was owned by Private Venture Capital Firms.

In November 2010, Ultimate Electronics opened a store in Tigard, Oregon.[9] It was the only Ultimate Electronics store on the West Coast, though Wattles had hoped to open 14 more in Salem, Oregon, and the Portland metro area.[citation needed]

As of January 27, 2011, the new company filed for Chapter 11 bankruptcy, ultimately choosing to liquidate, converting it into Chapter 7.[10] According to papers filed in U.S. Bankruptcy Court in Wilmington, Delaware, the company listed both assets and debt in the range of $100 million to $500 million. Among the largest unsecured creditors were Video Products Distributors (owed $6.1 million); Valassis Communications ($5.6 million); New Age Electronics/SYNNEX ($5.5 million); and Sony Electronics, ($4.8 million). Secured lender GE Capital was owed $64.8 million.[11]

References

  1. ^ "Ultimate Electronics, Inc". eNotes.com. Archived from the original on 2012-02-12. Retrieved 2012-05-27.
  2. ^ Doug Beghtel/The Oregonian (2011-02-11). "Ultimate Electronics begins liquidating". OregonLive.com. Retrieved 2012-05-27.
  3. ^ Raabe, Steve. "Ultimate Electronics files for bankruptcy". The Denver Post. Retrieved 2012-05-27.
  4. ^ Kansas City Business Journal (2005-01-12). "Ultimate Electronics files for bankruptcy - Kansas City Business Journal". Bizjournals.com. Retrieved 2012-05-27. {{cite news}}: |author= has generic name (help)
  5. ^ "History of Ultimate Electronics, Inc. – FundingUniverse".
  6. ^ "Home". auctioncog.com. Archived from the original on 2015-06-01. Retrieved 2015-06-01.
  7. ^ "Wattles Capital Management » About Us". www.wattlescapitalmanagement.com. Archived from the original on September 25, 2008.
  8. ^ Beth Nakamura/The Oregonian (2011-02-07). "Ultimate Electronics looks to close its 46 stores, including new Tigard location". OregonLive.com. Retrieved 2012-05-27.
  9. ^ Beth Nakamura, The Oregonian (2010-11-18). "Mark Wattles back with Ultimate Electronics in Tigard". OregonLive.com. Retrieved 2012-05-27.
  10. ^ Ultimate Electronics asks court to hold going-out-of-business sale, last visited 08 Feb 2011
  11. ^ McCarty, Dawn (2011-01-27). "Ultimate Electronics Files for Chapter 11 Protection". Bloomberg. Retrieved 2012-05-27.
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