Ritz Camera Centers Inc. has filed for Chapter 11 bankruptcy protection, citing plunging profits due to the digital revolution and the sinking economy.
The largest camera store in America, the 91-year-old company employs about 6,400 employees, and operates 800 stores in 40 states under the names Ritz Camera, Wolf Camera, Kits Cameras, Inkley's and The Camera Shops, according to Business Week.
The Maryland-based company also suffered severe losses with a subsidiary launched in 1987 called Boater's World, a boating-and-fishing supply retailer.
In October of 2007, Ritz borrowed $200 million from a group of lenders, with Wachovia Bank as the agent. Among other debts, the company still owes those lenders $47.7 million.
Although Ritz posted sales of about $1 billion last year, it will be in danger of having to shut down if it cannot receive interim financing approval.
In 2001, Ritz purchased Wolf Camera, the nation's second-largest camera retailer, Bloomberg reported.
With the rise of digital photography, Ritz's profits from photofinishing have taken a nosedive. Also, the company's retail sales were sharply down over the holidays, officials said.
