Thornton, Colo. - Ultimate Electronics is looking to convert its Chapter 11 bankruptcy to Chapter 7 liquidation.
The company, which liquidated its stores this month and will auction off it trademark, website and other intellectual assets on May 25, filed the motion this week in a U.S. Bankruptcy Court in Delaware, Bloomberg reported.
The move was prompted by GE Capital Corp. (GECC), a secured lender owed $65 million, which is blocking Ultimate's access to cash. The chain is now requesting a trustee to oversee its final dissolution.
The retailer, founded in 1968 by Bill and Barbara Pearse and controlled by investor Mark Wattles since 2005, filed for Chapter 11 bankruptcy protection in January for the second time in six years after business soured, bills went unpaid and vendors severed their credit lines. The company opted to sell off its inventory in a six-week fire sale after it was unable to secure financing or access its cash collateral to fund operations.