As of January 27, 2011, the company filed for Chapter 11. According papers filed in U.S. Bankruptcy Court in Wilmington, Delaware, the company listed both assets and debt in the range of $100 million to $500 million. Among the largest unsecured creditors are Video Products Distributors, owed $6.1 million; Valassis Communications Inc., owed $5.6 million; New Age Electronics/Synnex, owed $5.5 million; and Sony Electronics Inc., owed $4.8 million, court papers show. Secured lender General Electric Capital Corp. is owed $64.8 million.
This is the second time in 6 years that the company has filed for Chapter 11.The owners of Ultimate Electronics have asked a U.S. Bankruptcy Court for permission to sell off its inventory and close all 46 stores. Ultimate has an agreement with its consultants to begin going-out-of-business sales no later than Feb. 12 and to finish the job no later than April 15, court documents said.