Fox 31 (KDVR) has reported that Ultimate Electronics, a Colorado based company, filed for Chapter 11 bankruptcy Wednesday. Its parent company, Ultimate Acquisitions, filed bankruptcy papers in Delaware and released at statement that based the filing on a “significant downturn” in sales at some stores as well as the refusal of “some wholesalers to supply merchandise on credit.” At the time of the filing, the company, which bases its operations out of Thornton, Colorado, owed its largest secured creditor nearly $65 million. The company hopes to streamline operations at its 46 stores, 9 in Colorado, and hasn’t said which stores, if any, will have to close.
The Administrative Office of the U.S. Courts explains that Chapter 11 bankruptcy involves a debtor proposing a “plan of reorganization to keep its business alive and pay creditors over time.” It is primarily used by businesses to create a plan for paying creditors. The purpose of Chapter 11 is to pay off debts and ultimately keep the business operational. A bankruptcy filing like the one filed by Ultimate Electronics is a complicated matter that requires the expertise of a bankruptcy attorney.
If you own a business that is overwhelmed with debt and are thinking of filing for bankruptcy, you need the expertise and experience of a Parker bankruptcy lawyer on your side. Brian Daniel has years of experience working on bankruptcy cases in Colorado and he will put his expertise of the law to work for you. For a free review of your case, call his office today at (303) 951-0233.