Calumet Photographic suddenly closes its doors,
Files for Chapter 7 bankruptcy
Chicago-based Calumet Photographic has filed for Chapter 7 bankruptcy. Chapter 7 bankruptcy is the liquidation of a business's assets, as contrasted with a Chapter 11 bankruptcy during which a company hopes to reorganize.
As reported in the Chicago Tribune and by the Associated Press, Calumet's bankruptcy filing lists assets of $50 million to $100 million and liabilities from $10 million to $50 million. This would seem to indicate a healthy company. However, Petapixel, citing court papers, reported that Calumet declared less than $50 thousand in assets and $1 million to $10 million in liabilities. Whatever the details of the financial situation, Calumet's doors were closed on Thursday, March 13.
Although employees were not given any official warning of the closing, on at least two occasions Calumet had not been able to pay their employees and paychecks that were due on Friday, March 7, never made it to employee bank accounts. One manager indicated that Calumet had been on credit hold with Nikon, Epson, Sony, Fuji and other vendors. 250 people lost their jobs.
Customers had no advance warning of the closing. With the phones disconnected, their website down and Facebook page offline, customers have no information about what will happen with gift cards or equipment left at Calumet for cleaning or repairs.
Just one year ago Calumet had bought assets of bankrupt Penn Camera and Ritz Camera stores in the Washington DC/Baltimore area.