Ultra Enters Chapter 11
By Rob Bates -- JCK Online, 6/1/2009 2:00:00 AM
Jewelry retail chain Ultra Stores filed for Chapter 11 bankruptcy protection in April in a "prepackaged" bankruptcy with its vendors and banks that it hopes to emerge from soon.
"We really do expect to go in and out of this in record speed because of the agreement the parties have reached," said Kris Land, chief marketing officer of the Chicago-based company.
The company will close 12 of its 181 stores as part of the restructuring, Land said. The company also runs leased departments in chains like Filene's Basement and Burlington Coat Factory.
In March, it reached an agreement in principle with the creditors and lenders that led to the filing and reorganization. Agreeing on the restructuring has "really been a very consensual and positive experience," Land said. "We spent three months in detailed negotiations with the trade and the lenders. Hats off to everyone who worked on it."
Ultra has procured a $30 million debtor-in-possession facility.
Ultra is the fourth jewelry chain to file for Chapter 11 this year, after Fortunoff, Shane, and Robbins Brothers.
