Newspaper article The Record (Bergen County, NJ)

Another Tv, Audio Store Runs for Cover

Newspaper article The Record (Bergen County, NJ)

Another Tv, Audio Store Runs for Cover

Article excerpt

Electronics Expo plans to keep its two stores and website open while restructuring its business under Chapter 11 bankruptcy protection, the Wayne-based retailer said Monday in documents filed in support of its bankruptcy petition.

The initial bankruptcy petition was filed with the U.S. Bankruptcy Court for New Jersey on Sunday evening.

In court documents, Leon Temiz, the founder and president, blamed his company's financial problems on minimum-advertised-price and universal-pricing policies imposed by manufacturers. They hurt the Electronics Expo business model of aggressive discounting and special prices to lure customers, he said.

Temiz also cited manufacturers' policy of barring sales by "third- party websites," which prevented Electronics Expo from selling goods on e-commerce sites such as Amazon.

Electronics stores, from the largest chains such as Best Buy to the smallest one-store operations, are struggling with weak sales of televisions, the lingering impact of the recession and competition from online retailers.

Stephen Smith, editor-in-chief of consumer electronics trade publication TWICE, called the bankruptcy filing an indication of the difficulties presented by the economy. "Even with the economy coming back here and there, there are still residual issues within the industry itself," Smith said. "It's been a tough several years in the audio-video area of consumer electronics, where Electronics Expo has competed."

Smith said it is likely Electronics Expo will be able to survive the reorganization. "Leon's been in the business a long time," Smith said. "He has a good reputation with suppliers. Suppliers, from what we gather, have been backing him during the past year, when they shut down some stores."

A number of electronics manufacturers with offices in North Jersey are among Electronics Expo's top creditors, including Samsung, Panasonic, LG and Onkyo. …

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