Published Tuesday, Feb. 8, 2011 | 5:20 p.m.
Updated Tuesday, Feb. 8, 2011 | 6:01 p.m.
The owner of Ultimate Electronics, which filed for bankruptcy Jan. 26, has asked the bankruptcy court in Delaware for permission to close all 46 of its stores, including two in Las Vegas.
The Las Vegas stores are at 741 S. Rainbow Blvd. and at 2555 E. Tropicana Ave. A local manager said Tuesday he was unable to comment on how many employees will be losing their jobs in Las Vegas.
The closures come two years after competitor Circuit City closed all of its stores, including four in Las Vegas.
Such retail closings have contributed to stubbornly-high commercial real estate vacancies in the Las Vegas Valley, which for the retail sector have been running at about 10 percent, according to local firm Applied Analysis.
Ultimate Electronics attributed its bankruptcy to weak sales and other factors.
"The debtors have determined that an organized sale of their existing inventory in all 46 of their retail stores, utilizing a 'going out of business structure,' is in the best interest of their estates and their creditors," said a court filing last week by company owner Ultimate Acquisition Partners LP of Thornton, Colo.
"First, the debtors do not have any debtor-in-possession (DIP) financing and have not secured any DIP financing. Accordingly, they do not have the requisite funding to operate their businesses as a going concern on a prospective basis. Second, (lender) General Electric Capital Corp. has not agreed to permit the debtors to use their cash collateral to acquire new inventory for their stores.
"Third, the debtors are concerned that the assets will lose value if an immediate liquidation of their assets does not occur because inventory is not being replenished with newer model merchandise," the filing said.