Ritz Camera looks to sell remaining assets amid liquidity concerns

By Jennifer Lanning Drey

Portland, Ore., July 6 - Ritz Camera Centers, Inc. requested court approval of the bidding procedures related to the proposed sale of substantially all of its remaining assets, according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

The company said it does not have sufficient availability under its debtor-in-possession financing agreement to continue operating through the summer as a stand-alone entity.

Given the liquidity concerns, Ritz is looking to put in place a sale process that will allow it to enter into a stalking horse agreement with one of two possible bidders with which it has had productive discussions.

Ritz asked for court approval to pay up to a 2% break-up fee if a stalking horse bidder is selected.

If a stalking horse agreement cannot be reached, Ritz plans to conduct an open auction process.

Under the proposed bid procedures, bids are due by 4 p.m. ET on July 16 and must include a cash deposit of 5% of the proposed purchase price.

If necessary, an auction will be held on July 20.

The company has proposed the hearing on the bid procedures be held on July 10 and the sale hearing on July 23.

Ritz, a Beltsville, Md.-based specialty camera and image chain, filed for bankruptcy on Feb. 22. Its Chapter 11 case number is 09-10617.

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