| Sign in: |
| Members log in here with your user name and password to access the your admin page and other special features. |
|
|
|
|
|| SportsShooter.com: Member Message Board
Ritz Camera files for bankruptcy
Thomas Campbell, Photographer
 |
Houston/San Antonio | TX | USA | Posted: 12:14 PM on 02.23.09 |
->> http://www.bizjournals.com/triangle/stories/2009/02/23/daily3.html
In Ritz's bankruptcy filing, made late Sunday, the company's chief restructuring officer, Marc Weinsweig, says: “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.”
...
Court papers show the company’s 30 largest unsecured creditors without collateral backing their claims are owed about $65.6 million. The three biggest creditors listed are: Nikon Inc., owed $26.6 million; Canon USA Inc., owed $13.7 million; and Fuji Photo Film USA Inc., owed $8.4 million. |
|
Landon Finch, Photographer
|
Colorado Springs | CO | USA | Posted: 12:47 PM on 02.23.09 |
| ->> So that's why Nikon raised their prices recently ;-) |
|
Dave Prelosky, Photographer
|
Lower Burrell | Pa | US | Posted: 12:56 PM on 02.23.09 |
->> Toss in whatever Circuit City owed Nikon and Canon and there's some significant cash involved...
The conventional wisdom when I was a Ritzoid many years ago was that the company was Nikon's single largest account. |
|
Eugenio Cebollero, Photographer
|
Kernersville | NC | US | Posted: 1:08 PM on 02.23.09 |
| ->> Time to go spend my gift card...today. |
|
Scott Greenlee, Photographer, Student/Intern
|
Crescent Springs | KY | United States | Posted: 1:34 PM on 02.23.09 |
| ->> I used to work for a Ritz Camera and enjoyed my time there. I'm disappointed and saddened by the news. However, I'm not shocked as more and more people print pictures and buy cameras at Big Box retailers such as Best Buy, Wal Mart and Target. Most individually owned camera stores also carry more equipment for professionals. I haven't been to a Ritz since I quit over four years ago. |
|
Kevin Sperl, Photographer
|
Gilford | nh | USA | Posted: 1:55 PM on 02.23.09 |
| ->> In one article I read that listed major creditors, I didn't see my name listed with my $60 rebate claim. I'm bummed! |
|
Mike Brice, Photographer
|
Toledo | OH | USA | Posted: 1:57 PM on 02.23.09 |
->> Ritz might have been able to stay competitive if they had priced things to sell but every time I wondered by there when I was in the local mall all the items were priced at MRSP.
Pretty hard to pay MRSP when B&H price is 10-20 percent cheaper even with shipping. |
|
Kyle Nosal, Photographer
|
New Windsor | MD | USA | Posted: 2:16 PM on 02.23.09 |
->> Interesting. I have a warranty on a point and shoot camera I purchased there last year. The camera recently stopped working and I was going to take it in to get fixed. With this announcement, do you guys think they will still accept the warranty? or is it too late?
Kyle |
|
Ian Halperin, Photographer
|
Plano(Dallas) | TX | USA | Posted: 2:32 PM on 02.23.09 |
| ->> Would Nikon/Canon/Fuji take back all on-hand inventory as repayment or would Ritz liquidate it? |
|
Mark Loundy, Photo Editor
|
San Jose | CA | USA | Posted: 2:39 PM on 02.23.09 |
->> Ian,
Chapter 11 involves reorganizing, not liquidation.
--Mark |
|
Gavin Werbeloff, Student/Intern, Photographer
|
Atlanta | GA | USA | Posted: 2:49 PM on 02.23.09 |
| ->> I wonder if: A. Boater's World get's liquidated, or B. Wolf is sold back to the Wolf family at a fraction of the original price. |
|
Michael Troutman, Photographer
|
Carmel | CA | USA | Posted: 4:28 PM on 02.23.09 |
| ->> Nikon was owed $26.6 million and is the largest unsecured creditor... |
|
Chuck Steenburgh, Photographer
|
Lexington | VA | USA | Posted: 4:52 PM on 02.23.09 |
| ->> Now I know why that Ritz guy was in all of his own ads. He just couldn't afford to pay actual models. |
|
Jim Sykes, Photographer
|
Montgomery Village | Md | | Posted: 5:15 PM on 02.23.09 |
| ->> I worked for them for a little bit while starting my own business and, IMO, they were a terribly run organization. There seemed to be a lot of waste when it came to certain employee positions they utilized and there was also a lot of waste in simply how they ran things. Its a shame, but seems like they could have done a lot better in simply running the business, maybe the restructure will help that. |
|
Nic Coury, Photographer
|
Monterey | CA | | Posted: 6:11 PM on 02.23.09 |
->> I used to work for them...
My dad bought his Minolta XG-M from the same location when it was Carmel Camera Center.
Nice location. |
|
Bill Ross, Photographer
|
Colorado Springs | CO | USA | Posted: 6:19 PM on 02.23.09 |
| ->> Isn't Chapter 11 really just a "One last gasp of air."? |
|
N. Scott Trimble, Photographer
|
Lake Oswego | OR | USA | Posted: 6:25 PM on 02.23.09 |
->> I worked there when I did my internship at the Arizona Republic. I likened it to working for an auto dealership. I got in trouble when I would explain camera choices to people looking to buy big, and told them in detail what one did over another, when my boss pushed me to just sell the most expensive one they set their eyes on. I couldn't wait to get out. My boss even tried to squeeze me from my internship commitment too.
And to top it off. I still folded for the Sandisk 2GB deal and haven't gotten my rebate yet!!!!! |
|
John Strohsacker, Photographer
|
Sam Santilli, Photographer, Photo Editor
 |
Philippi | WV | USA | Posted: 11:57 PM on 02.23.09 |
| ->> They closed the local store without any notice, sent the unpicked up photos 1 1/2 hr away, put a sign on the window and packed up lock, stock, and barrell. The day of store fronts is dying fast, very fast. The Jetson's are damn near here...push a button and your merchandise shoots out a tube in your living room. |
|
Paul W Gillespie, Photographer
|
Annapolis | MD | USA | Posted: 11:58 PM on 02.23.09 |
| ->> Man, I was counting on getting a job with them when I lose my newspaper job;) |
|
Chuck Liddy, Photographer
|
Durham | NC | USA | Posted: 12:41 AM on 02.24.09 |
| ->> paul, forget that. it's mcdonald's my friend. I am already looking forward to my three square meals a day....fries..fries and fries! |
|
Paul W Gillespie, Photographer
|
Annapolis | MD | USA | Posted: 3:27 AM on 02.24.09 |
| ->> You know Chuck I just looked up the average McDonald's salary http://www.simplyhired.com/a/salary/search/q-Mcdonalds and it is in the ball park of what most journalists make and as you mentioned, there is that 3 squares a day. I bet managers make even more. I already have extensive knowledge of the product. |
|
Paul W Gillespie, Photographer
|
Nic Coury, Photographer
|
Monterey | CA | | Posted: 3:34 AM on 02.24.09 |
| ->> I'll take In N Out. |
|
Michael Fischer, Photographer
|
Spencer | Ia | USA | Posted: 10:19 AM on 02.24.09 |
->> Chapter 11 is, reorganization as Mark points out. However, what most people don't understand is how expensive Chapter 11 is. You pay lawyers, you pay accountants and auditors, you pay lots of people who DO get paid first.
This is why so many Chapter 11's turn into Chapter 7s - they run out of cash and can't secure funding.
What really did Ritz in was the venture into the boating business. That industry has REALLY tanked, and just the fact they went into a completely different business was a prime indicator that senior management had lost focus on the photographic business.
As for Nikon and Canon,if they are like a lot of vendors they will many times pay a percentage to a company that acts like a insurance company to guarantee payment. If the company doesn't get paid, the coverage kicks in.
Michael |
|
Jeff Brehm, Photographer, Photo Editor
|
Charlotte | NC | USA | Posted: 12:53 PM on 02.24.09 |
->> New at McDonald's -- the McLiddy Meal. Two ground Chuck patties, all the ISO you want, served on a wide-angle bun. Plus all the fries you can scarf. It's a feast fit for a Sports Shooter ... or was that to give a Sports Shooter fits?
Get more for your money when you RAW-size your order. |
|
Michael Troutman, Photographer
|
Carmel | CA | USA | Posted: 1:09 PM on 02.24.09 |
->> Not to detract from the fast food discussion, but those that are interested can read the full PDF of the initial filing here (available for seven days): http://w2.wikisend.com/node-fs/download/926e5c9eafad7cd729a9cbf83dfe5e2a/ri...
Apparently, their inability to pay approximately $6 million in sales tax in several states, coupled with a restriction in credit lines (both cited in the PDF), finally forced the reorganization. Obviously, many other factors are involved as well. |
|
Dave Prelosky, Photographer
|
Lower Burrell | Pa | US | Posted: 3:01 PM on 02.24.09 |
->> Michael (F)
I'm sure that lots of detail will be forthcoming, but I'd submit that while boating and photo equipment are different product lines, the sales of each are fairly similar. A number of large manufacturers and distributors offer products that a dealer can then retail under a house brand as well as the "major" brand.
One reason I left Ritz was that they weren't - im my solitary opinion - a photographic business,but a photofinishing operation with a photo equipment marketing subsidiary. Equipment sales were the engine that drove film processing. Anyone who ever shopped at a Ritz was offered at least one Frequent Foto Card, ostensibly to provide customer benefits while virtually demanding return visits for processing. Anyone who spend time behind a Ritz counter knew the hell of not moving enough cards or having a D&P with film percentage that was considered low.
I believe that when I was a Ritzoid in the mid 80's we employees believed that the Ritz family moved into boating because they were swimming in cash. Remember - in 1990 a Ritz reprint was .50 and there were no Walgreens or Walmarts with 17 cent 4x6's around. Now there's everywhere.
As an aside, I believe they still operate N35RZ. |
|
Jon Wright, Photographer
|
Wayzata | MN | USA | Posted: 4:18 PM on 02.24.09 |
->> Dave,
I second that emotion. When we weren't fighting to make the "planogram" work we were being pushed really hard to add club members, sell add-ons, etc. It was not a fun environment to manage. |
|
Curtis Clegg, Photographer
|
Belvidere | IL | USA | Posted: 4:51 PM on 02.24.09 |
->> I'm pretty sure the most profitable item that Ritz sold was their Extended Service Plans. I didn't feel too bad about pushing them though, because they really did repair or replace virtually any damaged camera, regardless of cause, if it was still covered under the ESP. The wait to get your camera (or a replacement) back could take 4 weeks or more though... one customer got a functional replacement for her older water-damaged digicam, but I know the replacement was purchased on eBay.
http://www.popphoto.com/howto/837/buyers-guide-extended-camera-warranties.h...
And yes Dave P., Ray Enterprises still owns and operates N35RZ:
http://registry.faa.gov/aircraftinquiry/nnumSQL.asp?NNumbertxt=35RZ
I'm kind of sad to see them go... I had some good times working there but it was pretty clear that upper management had never spent a single minute behind a sales counter. |
|
Pat Farrington, Photographer
|
Ft. Collins | CO | USA | Posted: 11:55 PM on 02.24.09 |
->> One line in Michael Troutman's post jumped out at me: "their inability to pay approximately $6 million in sales tax in several states". I always had a feeling that their online policy of "No Sales Tax Ever!" might lead to problems.
It also helps undermine sales at their stores. I had a customer about a two years ago looking at a Nikon D200, my price was the same as the local Wolf Camera (owned by Ritz for those who don't know) and the same as RitzCamera.com but the customer decided to buy online because he didn't have to pay sales tax. His rational was that he could get the cheaper price and still get the local support at the store. I mentioned to my coworkers that with that attitude the local store wouldn't be around for long because if their sales drop why would Ritz keep an underperforming store open? The store lasted longer than I expected, they just closed last month.
I have a friend who managed that store several years ago who was always complaining about company policies. They were always on his case that his store wasn't selling enough ESPs, magazines, cellphones, etc. The fact that overall sales, especially camera sales, were up didn't seem to matter. |
|
Jim Sykes, Photographer
|
Montgomery Village | Md | | Posted: 12:59 AM on 02.25.09 |
->> Pat, that is exactly some of the stuff I was eluding to above. I did say they were pretty wasteful in many ways, but were also mismanaged in many as well. It was obvious that corporate had a bunch of people that had never actually WORKED in their stores or they would not have come up with some of the policies they did.
In reference to your sales tax thing. We were screwed in the store. Employees worked on commission as a BIG part of their salary. People would come in all the time and shop, the go buy it off the internet site so they didnt have to pay tax. Then come back in and want us to show them how to use it or service it for them. The policy was that the internet site was a separate company (which was how they got around the tax issue supposedly) and therefore we did not have to service online customers at all.
What a choice. Piss them off for not supporting a product the company sold them, or lose money by helping them out when you didnt make a dime off them. Not good for business on any level.
They simply had too much coporate waste and mismanagement and it finally caught up with them unfortunately. |
|
Michael Troutman, Photographer
|
Carmel | CA | USA | Posted: 2:18 AM on 02.25.09 |
->> The issue with sales tax is that the company was not able to meet its past-due obligations in January as well as the current obligations for this month about to come due. The states involved could possibly step in and close the stores (or at the very least impose stiff fines and interest) if non-payment continued. Due to recently restricted credit lines, dismal December sales and many other contributing issues, the inability to make good on monthly sales tax obligations was (I believe) the final straw that tipped Ritz over into bankruptcy. This has nothing to due with their .com business. Details are in the court documents that I linked above, and you can draw your own conclusions.
How long their restructured debt, business model and corporate culture can survive in this economic climate remains to be seen. |
|
Curtis Clegg, Photographer
|
David Harpe, Photographer
|
Louisville | KY | USA | Posted: 12:21 AM on 04.03.09 |
->> More Ritz news:
http://www.businesswire.com/portal/site/home/permalink/?ndmViewId=news_view...
"Ritz Camera Centers, Inc., the nation’s largest specialty camera and image products and accessories retailer, announced today that it will close more than 300 stores nationwide as part of a court-supervised bankruptcy reorganization. The move will leave approximately 400 Ritz Camera stores still open around the country.
Retail inventory valued at more than $50 million will be liquidated at the stores that are being closed. Store closing sales offering substantial discounts on all inventory at those locations will begin on Saturday, April 4, and are expected to continue until everything is sold to the bare walls. " |
|
Michael Troutman, Photographer
|
Armando Solares, Photographer
|
Englewood | FL | USA | Posted: 1:41 AM on 04.03.09 |
->> I may be way off base here but I think I know why capitalism is failing. The growth of the corporation is killing individual creativity, small businesses, and diversity of products across the globe.
There are way too many corporations that own too many other corporations. This kills free enterprise. GE, owns everything from a TV Network to energy companies, appliance makers, etc... They are able to monopolize the market without really being a monopoly.
It is the same case with newspapers. Huge corporations bought every newspaper they could, thinking the profits would always be there. They leveraged huge unsecured debts, mortgaged everything and now they are killing themselves just to stop bleeding.
It is the same for Ritz - They bought Boatmen's world, Wolf, and every mom and pop camera store they could. All on credit and now that they have killed the small business owner, it is killing itself just to survive.
The same goes for banks (Citigroup) Insurance Agencies (AIG.) I think world leaders need to re-examine the "corporation." They should force the sale of these huge monsters otherwise we may never recover from this bad economy.
I don't think Capitalism can exists if only a few corporations control the world's capital.
What do you guys think? |
|
Dave Prelosky, Photographer
|
Lower Burrell | Pa | US | Posted: 3:33 AM on 04.03.09 |
->> Armando -
I'm not gonna dive into it, but I believe your logic is waaay off. If the point of capitalism is not to accumulate capital - cash - then what is the point?
I'd offer that our current problems are more a creation of the economic kiddies not playing well in the sandbox. |
|
Jon Wright, Photographer
|
Wayzata | MN | USA | Posted: 7:40 AM on 04.03.09 |
->> Armando,
My local photofinishing store owner is thrilled about his major competition going down. He thinks he may be actually seeing a little light at the end of the tunnel. This makes a big difference to his little independent store. |
|
Marty Price, Photographer
|
Concord | NC | USA | Posted: 10:32 AM on 04.04.09 |
| ->> Call before you head over looking for a deal. The Wolf Camera store here did not have any Nikon equipment! |
|
JC Ridley, Photographer
|
Coral Springs | FL | US | Posted: 11:09 AM on 04.04.09 |
->> From "The Consumerist" website:
"Sorry deal hunters, the liquidation sales starting today at over 300 Ritz Camera locations will be managed by the same cabal of corporate scavengers that oversaw Circuit City's abysmal liquidation sales."
http://tinyurl.com/cdsqnb |
|
Robert Seale, Photographer
|
Houston | TX | USA | Posted: 11:38 AM on 04.04.09 |
| ->> They are probably still pushing the twin-lens zoom deal and the Frequent Film developing cards even as they close up shop. |
|
Michael Fischer, Photographer
|
Spencer | Ia | USA | Posted: 1:36 PM on 04.04.09 |
->> Armando,
You are correct to a certain extent; however, in business, like in nature; a vacuum is quickly filled.
The trend of big fish eating little fish goes back to the beginning of time; right now the big fish has maxed out in many catagories; there will be new little fish, who innovate and find new ways to serve the markets; they will eventually get bigger and more successful; they will either be bought by bigger corporations or become a bigger corporation. It is a dynamic process that happens over and over again.
What IS different is you will see a lot more accountability put into place. New rules and regulations will basically make it impossible to do the things that got us in this mess.
(There were rules in place but over the last 20 years they were overturned; there's a reason our grandparent's generation put them there in the first place. Those who fail to learn from history are doomed to repeat it....
Michael |
|
Return to --> Message Board Main Index
|