Ritz Camera Centers granted court approval to sell assets to CEO

By Caroline Salls

Pittsburgh, July 24 - Ritz Camera Centers, Inc. received court approval of the sale of substantially all of the company's assets to chief executive officer David Ritz, according to a company news release.

According to the asset purchase agreement filed with the U.S. Bankruptcy Court for the District of Delaware, the assets were purchased under the name RCI Acquisition, LLC.

RCI has agreed to pay $16.25 million in cash, subject to adjustment based on the value of eligible inventory at closing, and a $7.8 million secured note. RCI will also pay $2.24 million in cure costs and assume specified liabilities.

Going forward, the new company, to be called Ritz Camera & Image, will continue to operate stores in dozens of markets nationwide under the retail brands Ritz Camera & Image, Wolf Camera & Image, Kits Camera & Image and Inkley's Camera & Image.

"Now on firm financial footing, we can devote all of our energy to capitalizing on this rich heritage and serving our customers nationwide," Ritz said in the release.

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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