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Ritz Camera & Image filed for Chapter 11 bankruptcy protection in June 2012. Ritz Camera is the largest specialty camera store chain in the U.S. Chapter The retailer faced liquidity problems and also had unprofitable stores. Under Chapter 11 bankruptcy, a corporation is protected for creditors and must reorganize its business. For Ritz Camera, that will include closing 128 unprofitable stores and reject expensive leases. A company is allowed to reject above market price leases if it is “burdensome” according to a July 18, 2012 article in the New York Law Journal. The rejection of the burdensome lease must, in the opinion of the court, benefit the estate of the corporation. The company will also consolidate its inventory.
This is not the first time the camera retailer filed bankruptcy. In 2009, it exited bankruptcy protection. That was after it had closed 400 stores and sold the rest of the business to a separate group.
If you are facing financial pressures, foreclosure or are considering bankruptcy, contact the law office of Jayson Lutzky, P.C. Mr. Lutzky, who has over 29 years of experience practicing law, will explain your rights to you at your free in person initial consultation. To set up a consultation, call our office at (800) 660-5299. For further information, visit www.BankruptcyNYC.com.