Thornton, Colo. — Ultimate Electronics will close multiple stores, has eliminated corporate-level positions, and has reorganized its merchandising structure as it attempts to rapidly emerge from Chapter 11 bankruptcy protection under its new management team lead by former Hollywood Video CEO Mark Wattles.
Details of the store closings and personnel changes were not immediately known.
Word of the anticipated action was communicated by marketing VP Jim Pearse, son of founder and former chairman Bill Pearse, in an open letter to vendors.
Pearse said that the moves are being taken to maximize profitability and reduce expense, complexity and duplication of effort. He noted that the smaller baseline of stores, along with improved cash flow, will allow the company to build a foundation for future growth that includes a multi-market expansion in the near future.
The news follows last month’s appointment of Wattles as CEO, succeeding Dave Workman, and the hiring of seven former Hollywood Video executives to fill key management roles at the struggling A/V chain.