Ritz Camera, considered America’s largest camera store chain, has declared bankruptcy. Ritz filed for Chapter 11 protection in Wilmington, Delaware over the weekend.
Ritz Camera Bankruptcy
Ritz Camera’s bankruptcy filing comes as creditors seek money from the chain, published reports indicate. As much as $65 million is documented as being owed. Ritz Camera’s bankruptcy papers report assets and debt of $500 million each. Slumping sales and an overall drop in consumer spending are blamed for the downfall.
The largest creditors named in Ritz Camera’s bankruptcy documents are Nikon (owed $26.6 million), Canon (owned $13.7 million), and Fuji Photo Film (owned $8.4 million).
Ritz–based out of Beltsville, Maryland–has more than 1000 stores across the U.S., with locations in 45 states. It also operates a boating supply business, Boater’s World, which is included within the Ritz Camera bankruptcy filing. Ritz says that business was experiencing a sharp drop in sales as well, made worse by high gas prices over the past months.
Ritz had acquired the nation’s then-second largest camera store chain about eight years ago. The company bought Wolf Camera after it declared bankruptcy in 2001.
there camera prices are ridiculous. Its like they dont believe the internet exists… drop your prices and people will buy…
First of all no one makes real money on camera sales and Wolf's prices are competitive with most other stores. What killed them was the drop in processing……film developing was very profitable. Digital processing was not. The company was also not well run, too much nepotism and extremely poor management. I worked for the company and how they existed this long is a mystery to me.
At http://www.mufungo.com there were even selling pottery. Stick to the cameras, guys.
I work there and you will spend more money on ink and paper than you would in the store. You also don't get the same finish as you would if the prints were processed chemically. Thirdly, I edit your prints for you- adjust the color and red eye.
Prices ridiculous? Compare to any brick and mortar in town and they are competitive. Internet stores do not have the overhead of a store. You are more than likely the consumer who will find your favorite at the camera store, then buy online. Where are you going to find your camera when Ritz is gone? I agree with too much diversification. Ritz must stick to the basics. They do have a nice lab and are willing to make sure you are happy with your prints.
Ritz has the best deals cameras out of any brick and mortar retailer. Of course the internet will have better deals. Some people want to buy in person and want or need the service, others just want the best price and do not need any customer service.
The print quality is great, the services are outstanding and the help is typically pretty darn good too. Everyone has their opinion. If you want to shop local, shop at Ritz, if you want to shop online, be careful! Maybe every store should just close their doors and everyone will be forced to shop online. Pretty stupid idea, right?
very intresting
Tom and CollegeKid are the type of a-holes who will go to Ritz Camera and waste an hour of the salespersons time figuring out which camera they want, then go to the internet to buy. Then, when they can't properly use the camera or it breaks, they will go back to Ritz and waste more of the salespersons time getting his expert advice which they did not pay for. You are leeches on society.
Ritz Camera is poorly run company. David Ritz ran all of his good executives and managers out of the company because he is too damn cheap to pay them properly. The company also approached the new digital market in just about the most ass backward way they could. The retail photo finishing is DEAD. An 80% decline photo finishing revenue in the last 10 years should have been an obvious sign that their business model was doomed. They have not realized that yet. It is only matter of time before start cutting jobs and closing stores. Just a few years ago, Ritz was about to brag about having 1200 stores in 49 states. Now they are down to just over 800 store in 40 state (the numbers in this article are wrong, the author included Boater's World in the 1000 stores). I personally can't wait to see how their biggest suppliers react to this news.
Ritz employees use the equipment in the store and then sell that equipment to customers! Who would want to buy from them?
I work for a survivng competitor to Ritz- a more local/regional chain,
You say prices are ridiculous? Try seeing exactly wat you get on the internet at those “great prices.” Often you get a grey market camera with no US warranty, or you get a camera where you have to buy the accessories that normally come with it, or you have to wait for a long time to get it when you do not purchase the extras that a high pressure sales rep, These points have been reinforced in numerous magazine as well as newspaper articles as well as from the consumers themselves. Also- who do you turn to for customer service when there is a problem?
I am one of those salespeople who encountered the a-holes that wanted to see the camera & find out all about it only to have them buy online. Then, the guy had the cohones to come back & ask me to show him how to use the camera. I suggested to him to call where he bought it from- much to his displeasure.
On the subject of prints- yes one can print at home, and the cost will average around 25-30 cents per print. Paper may seem inexpensive, but when you use the ink at a photo quality- it will go fast. Also a PROFESSIONAL lab will do red-eye removal, color correction, proper cropping, etc… many of what the novice at home wont do or be able to do.
basically, if a brick & mortar shop can service their customers properly- and not get too diversified- they can succeed.
Ritz Camera has models out on display for customer use, the employees are not allowed to take them outside of the store. As for being sold a shelf model, if the shelf model is all the store has in stock and the customer must have the camera the same day, the employee can't be blamed. Ritz offers direct ordering from the warehouse and will usually deliver the camera in 3 days or less. Some stores that have another Ritz nearby will often offer to call and check the availibilty of the same model in that location.
Now I know why founder of Ritz Camera, David Ritz, is selling his megayacht priced at $33.9 million . The yacht is 174 feet long and is named 'Sea Bowld' which is the generic line of products offered through Boater's World stores. The listing can be viewed through the website for Ft. Lauderdale based yacht broker, Fraser Yachts.
What shame and it's sad for the hard working and dedicated associates who may be in jeporady of losing their jobs as stores close. While the economy and changing consumer behavior are certainly contributors to Ritz Cameras downfall it was also the sheer greed of the company's owner David Ritz that also played a role. His ego led him to fly around in a $30 millon dollar Jet and cruise the seas in a $33 Millon dollar yacht. From a leadership prospective he was far from a leader and didn't care a whole lot about the people who worked for the company from the distribution centers to top management. Money and big ego's do that to people. He drove out all of the people that led to the success of the company when they started to earn to much (by his standards not industry ones). Hopefully, Ritz will surrive and the lenders who help save the company make it a condition that David Ritz remove himself from being invloved in the company.
When will the “Going Out Of Business” prices be available online?
David Ritz is not the founder of the company. His uncle is. The company has been around for 90+ years.
I work for them and it has beeb a journey with the company from wolf to ritz …..whats sad is that we are hard working employees and this company is stingy with pay raises……horrible and why am i still here? oh yeah it pays my bills….HATE TO SAY IT BUT WE ARE DONE
omg i know what you mean been with the company 9 years and only 3 raises have been given to me. I love working in customer service especially when i love taking pics and helping others. I have to say my whole store is worried we are hard working people. our store is one of the busy stores in our area, we all put a 100% and not even a thank you not even a raise…..but ohhhhhhhh a RM OR DM are so quick to threaten your job for something so stupid….BUT I DO HAVE TO SAY PEOPLE THAT HATE ON US WHATEVER…..PEOPLE GO OUT TO BUY CAMERAS ELSE WEHRE BUT WHEN THEY HAVE A PROBLEM THEY COME TO US FOR HELP….
I have been shopping for cameras for months now. I am a noobie and need to get a decent camera for macro use in jewelry business. I must say the people at Ritz were knowledgable and more than willing to help. After figuring out what I really needed, I did check on line and found better deals but did not buy because I wondered whether the cameras were grey market and because I considered that I wanted to be able to go to a person for help. Also, the print services at Ritz appeared to be so much better than the snapfishes of the world where I am left to my own devices to correct photos. The print prices are not significantly different when you consider there is no shipping involved when you pick them up at the store. Just as I am ready to finally buy with Ritz, this happens. Does this mean all stores will close now?
idiot. their prices were very much competitive with the internet. there is no margin on cameras for brick and mortar stores. there is no margin on cameras, period. all the money that was made was made from imaging and from accessories. idiot.
idiot.
umm…. okay…. so maybe you are a little defensive about this…. I was just wondering if they would have some good sales like Circuit City did?! I never said anything about them being expensive! Seriously calm down sweetheart.
We are being told that the company has all intentions of staying in business, for whatever that is worth. Quite a few stores will have to be closed, as they have only been staying open due to penalties for bailing on the lease. Chapter 11 allows them to get out of any leases without penalty. Let's wait and see if they really want to stay in business or are just trying to save some money before bailing. My guess is that before it is all over we will be at least 33% owned by Fuji. They cannot survive without us.
Ritz would match prices of its competitors so, prices weren't a big deal.
(Laid off Employee)
Loved what you had to say. Right on the money.
PentaxMan
Its better to go to target and get it done. Working for ritz they are overpriced and snobbish. If they learned to make a middle of the road commitment and not be overpriced on camera equipment and quality they would not be in bankruptcy fillings.
I hear a meeting has taken place and the wheels are in motion to close all store locations. They have sent “auditors “to inspect stores. These guys are to appraise locations and value them for liquidation. They will check store fixtures, stock, displayed merchandise, etc. maybe even take a few pictures. Ritz then will turn over the keys, actually give them the keys, to the highest bidder. They have started this in the mid-west area.. Best wishes to all..
Yes, anyone who knows anything about the camera business knows the money is not to be made in the cameras themselves because there is no overhead to be made on cameras.
Many people buy cameras online and it's a foolish thing really. Most people don't know who they are buying from and what the condition of the product is. A lot of products found on the internet are not even true products of a certain manufacturer–meaning you can buy a camera that looks like a Nikon, but it isn't really. I've seen them everywhere!
Also, people can find cameras every where online for a lower price, what they don't realize is they were given a “price break” because there is no battery and/or warranty included. A battery can set you back 40-60 bucks and in my book a warranty is priceless because it's a “must have” for electronics, especially digital. Technical glitches are so common in every brand. If you buy something online with no warranty and something happens, you are in serious trouble.
Keep in mind every top of the line item is sold at a competative price, if you are finding something cheaper you may also be looking at an out of date model, which wouldn't be something you could find in stores any way.
Clearly we all know the internet exists, but it appears the ridiculous person in this scenario is the stupid consumer.
I started with Wolf and went through their bankruptcy process. Once we filed Ch. 11 we got product back in the stores. With Ritz, we still don't have much to sell after one month of Ch. 11. With Wolf Camera, Chuck Wolf was distraught as the bankruptcy proceeded. He felt terrible and actually apologized. David Ritz has not indicated anything close to contrition and as his arrogant minions swagger through stores and conference calls, while the rest of us twist slowly in the winds of unfortunate fate. Forget AIG, it is time to take the pitchforks to Beltsville
I like Ritz. I am sorry to see that they declared bankruptcy. I am even more sorry that their only store in the St. Louis area closed today.
Having said that, it is not that foolish to buy cameras online, especially if you know what you are doing. I have bought several cameras from B&H in New York. Their prices are generally noticeably cheaper than you can buy locally. I had one problem when I bought a Nikon D200 2 years ago; I called them up, they gave me an RMA and an address; I sent the camera back; and within another week, I received another new D200. Sure, I was without the camera for a week….but I still had an older one I used in the meanwhile. And I still saved a substantial amount of money (at least $200 or more). I also got the battery as well as the normal, standard warranty.
I have used Ritz in the past to develop many pictures. Their prices have been fairly competitive here; I liked the quality; and sometimes, I liked it when they edit your pictures (I say sometimes, because sometimes I don't want them to do it since I often edit them myselves)…..but it wasn't a lot of money, even when I print 200 to 300 pictures at a time. I don't see how they can make much money at all from prints.
They most likely WON'T have those prices online because Ritzcamera.com is not associated with the stores at all. They are two different things. If you want a liquidated priced item you have to go into those stores being liquidated to get it.
I worked for Shitz Cameras for years! (S)itz bought out other competor's stores constantly, and had a huge mis-match of lab equipment that was old and not well taken care of. They were really not a pleasant company to work for. Back biting between the employees, trying to steal each other's sale~the customer was always the loser. CostCo does a much more reasonably priced print in different surfaces, usually in under a hour.
As an employee, I was pushed to sell what made (s)hitz money and didn't take care of the customer's needs. Often, an unsuspecting customer would be oversold into a product that they didn't need. It's been only a matter of time before this would come and bite this company in the butt. I got out 2 years ago and haven't looked back twice!
I would not purchase from”KITS, RITZ,WOLF etc, Same shit, different name!