Ultra Stores Files for Chapter 11 Bankruptcy Protection

Jewelry retailer Ultra Stores Inc, parent company of Ultra Diamonds, filed for Chapter 11 bankruptcy protection on Thursday, listing assets and liabilities in the $10 million to $50 million range in its filing, Reuters reported. The retailer cited weak economic conditions and loss of operating liquidity.

Ultra, with 181 locations across the U.S., said it had defaulted on certain debt covenants on its credit arrangement. However, it said it had secured a $30 million debtor-in-possession financing and a commitment for an exit facility from Bank of America Corp.

The default resulted in a loss of operating liquidity of about $11 million.

Ultra is joining a growing list of U.S. jewelry retailers that filed for Chapter 11 Bankruptcy Protection due to the economic fallout in the past six months. Among them are Robbins Bros., Christian Bernard, Fortunoff and Shane Co. They are joined by department store Gottschalks that was a large jewelry retailer and by Japan’s Miki Corp that declared bankruptcy in January.