Ultimate Electronics Becomes a Private Affair
It's been a tumultuous year, to say the least, thus far for bankrupt specialty retailer Ultimate Electronics, but perhaps its situation is about to stabilize a bit.
On April 20, company CEO and Chairman Mark Wattles essentially took the remains of the bankrupt public company private. An entity called Ultimate Acquisition Partners, L.P. (UAP), which is in turn owned by Mark Wattles Enterprises, LLC, purchased from Ultimate Electronics Inc. the 32 Ultimate Electronics and SoundTrack stores that haven't been slated for liquidation. At the beginning of 2005, Ultimate had 65 stores. UAP also acquired Ultimate's trade names and other corporate assets.
Under a deal approved by the U.S. Bankruptcy Court, Wattles is purchasing the remains of the business for $43.75 million cash, plus a $3.5 million promissory note, the assumption of certain liabilities and cure costs, and an agreement to forgive a portion of Ultimate Electronics debt owed to him as a lender.