Ultimate Electronics
| Company type | Private |
|---|---|
| Industry | Consumer electronics retail |
| Founded | 1968 |
| Fate | Bankruptcy; ceased operations in 2011 |
| Headquarters | Thornton, Colorado , United States |
Ultimate Electronics was a private consumer electronics retail chain that ultimately ceased operations in 2011 following two bankruptcy filings after 2006. Founded in 1968, the company was based in Thornton, Colorado, and initially incorporated in Delaware. At its operational peak, Ultimate Electronics maintained 64 stores across 14 states, though throughout its history it operated a total of 78 locations spanning 20 states. The retailer’s presence included markets such as Arizona, Colorado (where it originated under the name Pearse Electronics), Illinois, Iowa, Idaho, Kansas, Minnesota, Missouri, Nevada, New Mexico, Oklahoma, Oregon, Massachusetts, New Hampshire, New York, South Dakota, Texas, Pennsylvania, Utah, and Wisconsin. Some outlets featured distinctive neon signage with ball-shaped decorations at the entrances—similar to the one seen at Olde Towne Plaza in Ballwin, Missouri—while others showcased circular entryways.
Early history
Before adopting the Ultimate Electronics brand, the stores operated under various names including SoundTrack in Colorado and Audio King across Minnesota, Iowa, and South Dakota.
In the year 2000, Ultimate Electronics embarked on an aggressive growth strategy that resulted in doubling its store count to 64 by 2004.
Closure
In 2005, the company initiated bankruptcy proceedings. During the subsequent bankruptcy auction, Mark Wattles, founder and then-CEO of Hollywood Video, purchased 32 stores; the remaining locations were shut down. Following this, Ultimate Electronics became a privately held enterprise managed by Ultimate Acquisition Partners, L.P., a subsidiary of Wattles Capital Management, LLC. Ownership was divided with Wattles Capital Management holding a 71% stake, Hewlett-Packard Co. possessing 25%, and the remaining 4% controlled by various private venture capital firms.
In November 2010, Ultimate Electronics launched a new store in Tigard, Oregon. This location was the sole Ultimate Electronics outlet on the West Coast, although Wattles had plans to establish an additional 14 stores throughout Salem, Oregon and the Portland metropolitan area.
By January 27, 2011, the reorganized company filed for Chapter 11 bankruptcy protection but ultimately transitioned to Chapter 7 liquidation. Court documents filed in U.S. Bankruptcy Court in Wilmington, Delaware revealed that both assets and liabilities were estimated between $100 million and $500 million. Major unsecured creditors included Video Products Distributors ($6.1 million), Valassis Communications ($5.6 million), New Age Electronics/SYNNEX ($5.5 million), and Sony Electronics ($4.8 million). The secured lender GE Capital was owed $64.8 million.
References
External links
- Official website archive hosted on archive.org
- Store locator archive available at archive.org
- Articles with short description
- Former consumer electronics retailers in the United States
- Retail businesses founded in 1968
- Retail businesses closed in 2011
- Entities that underwent Chapter 7 bankruptcy
- Entities that filed Chapter 11 bankruptcy in 2006
- Entities that filed Chapter 11 bankruptcy in 2011
- Entities that filed Chapter 7 bankruptcy in 2011
- Companies headquartered in Colorado
- Thornton, Colorado
- Defunct retail enterprises in the United States
- 1968 establishments in Colorado
- 2011 closures in Colorado
- Defunct retail companies of the United States