Ritz Camera Inc. has filed for Chapter 11 bankruptcy again, making it the company’s second filing in three years.
The photography retail chain went through restructuring in 2009 where it was purchased by a group which included the company’s president David Ritz, and other members of the founding family.
They attempted to restructure by refinancing their debt and obtaining additional capital. However Ritz says they aren’t making enough profit to keep all of their 265 retail stores open.
The recent bankruptcy filing will enable the photography retailer to reject unprofitable leases and increase their cash flow while under the debt restructuring plan.
Ritz Camera is among several companies that have filed for Chapter 11 bankruptcy twice within a few years, which is often referred to as Chapter 22. Other Chapter 22 filers include Hostess Brands, makers of the infamous Twinkie, and Buffets Inc., which run family restaurants across the country.
Bankruptcy is often the only option for individuals or businesses that find they are deeply in debt. A bankruptcy lawyer can help determine if this is the best pathway out of debt.
The available bankruptcy structures give a troubled entity the opportunity to stop the collection activities of their creditors while they work on reducing their liabilities. Deciding on the right debt-relief plan is difficult until the indebted consults with a bankruptcy attorney to explain the process and determine which filing will benefit them the most.
Bankruptcy lawyers give businesses and individuals the chance to wipe the slate clean and start over again.