Calumet Announces Immediate Closing in the US

[henryp]

<blockquote>

<p>Oh! Henry! It seems inappropriate for a B&H Photo-Video spokesperson to be making so many comments about a competitor's bankruptcy. As a B&H customer for many years, I can tell you that your comments do you no good.</p>

</blockquote>

<p>I am sorry you feel this way but disagree entirely. This is news which has an impact on our industry. My only editorial comments have been my sympathies to their employees and my sadness a worthwhile competitor has left the field since I think competition benefits all involved -- vendors, retailers and customers. YMMV<br>

In retrospect I'd do it again. Had I been gloating I think you'd have a point but I do not believe any reasonable person can detect an iota of that in any of my comments.</p>

<p>Henry Posner<br /><strong>B&H Photo-Video</strong></p>

 

[CharlesBecker-Toronto]

<p>Tim-I see that you joined up on March 11th so you may be unaware that Henry has been and continues to be an invaluable information resource on this site. Apart from that, there was nothing inappropriate about anything he has had to say about Calumet. Chill out Tim. cb</p>

[Thomas J.]

<p>Used Calumet a few times for lens rental when I was shooting assignments for the newspaper. The store in Flatiron, NYC was open on Saturdays, which was great for when I had to rent lenses or needed some doodad for a shoot. I guess I'm not surprised they're closing. Sign o' the times....a horrible economy, especially for the middle class who have much less "disposable" income, cheaper alternatives for photography equipment such as that famous auction site as well as Amazon, and of course, the huge photography retailer B&H dominating the market, along with Adorama.</p>

[barry_cochran]

<p>Ditto to what Charles Becker wrote.</p>

[daverhaas]

<p>just a few things</p>

<p>1) It did catch all the employees by surprise - I know one of the store managers via and a group that we're both members of - The first notice he had was after hours Wednesday. </p>

<p>2) Apparently last week's payroll checks were bad - I don't know if was all or some - but they (Calumet) tried to blame it on a software / security issue not a lack of money. </p>

<p>3) As of yesterday evening - managers where tracking down and contacting people who had rental gear out. I'm guessing trying to get it returned. </p>

<p>4) They are trying (Key word - TRYING) to see if they can get a few stores to reopen. Not sure if that is just to consolidate inventory and close out sales or what. </p>

<p>5) According to an article in a Chicago business journal - it was one creditor who called their line of credit or account due and would not renegotiate further. </p>

<p>Someone nailed it on the head - It continues to frustrate and annoy (and worse but the word censors would not let me say it here) me that companies continue to go the "retread" route with leadership and executives. You would think that after what those guys did to Ritz (twice) - No one with a brain would let them near a brick and mortar camera / photographic / electronic operation again. But no - one got into Calumet and brought his buddies with him. And sure enough they did the same failed model that caused Ritz to go down the tubes. Of course the same inbreeding of executives happened at Circuit City and Ultimate Electronics. With the exact same results. One of these days, I hope that boards and shareholders wake up and realize that if an executive tanks a business once - that's enough and he/she and their buddies deserve to work at Starbucks instead of sitting in there drinking coffee. </p>

<p>I remember when you could walk into a Ritz store and see and touch the latest Nikon's, Canon's, Minolta's, etc... When Ritz finally went away - they had NOTHING in stock except for a few crappy, overpriced consumer grade Point and Shoots that you could find for A TON less at Best Buy or Target. Ritz was basically charging Pro prices and promising pro service on disposable cameras. </p>

<p>From what I heard same thing was happening at Calumet - or at least at some of the lessor locations - People going into see the latest Nikon or Canon DSLR or lens were being told that they didn't stock it, but could "order it" for them. Sure sign of a failure and a repeat of the Ritz model. </p>

<p>Dave</p>

[GBarrington]

<p>This has been coming for at least 40 years. The last photo shop in Springfield, Illinois closed in 1972 or so. So I don't think the big online retailers had much to do with it. I suspect the conversion of cameras to high markup luxury goods to low mark-up consumer goods had at least as much as the internet.<br>

There is SOME hope on the horizon, I think. Cardinal Camera (a St Louis regional chain) opened a store in Springfield last year, so maybe we are at the beginning of another 40-50 year cycle! Prices are 'reasonably' competitive with the internet. We'll see if they survive! I hope they do.</p>

[CharlesBecker-Toronto]

<p>"Any stores in Chicago where you can still try and buy pro grade camera and studio equipment?"<br>

<br>

Thomas-what about Central Camera? cb :-)</p>

[john_shriver]

<p>The ex-Ritz managers may consider this a great success -- we just don't know what their compensation plan was. The intent might have been to put the blood (money) in their pockets as the patient died.<br>

Margins on cameras and lenses have been razor thin for 30+ years. Profit was in the UV filters (and other accessories), and of course film processing. The latter is the financial foundation that kept it running for years. My neighborhood camera store was down to 10 rolls of film a day when they called it quits. Had probably been 500 to 1000 rolls 15 years ago.</p>

[daverhaas]

<p>Yes John, the ex Ritz people may consider this a success - since they undoubtedly got their packages, bonus', etc... But from a owner's perspective I can't see this as anything but another example of people who are clueless being given the keys to the car and wrecking it. </p>

 

[owen_omeara]

<p>I agree with David. This is not good news for any of us I wish Cardinal luck.</p>

<p>-Owen</p>

[ShunCheung]

<blockquote>

<p>1) It did catch all the employees by surprise - I know one of the store managers via and a group that we're both members of - The first notice he had was after hours Wednesday.<br>

2) Apparently last week's payroll checks were bad - I don't know if was all or some - but they (Calumet) tried to blame it on a software / security issue not a lack of money.</p>

</blockquote>

<p>Those two points contradict each other. When a pay check doesn't come through, it is usually a very bad sign, a clear indication of a serious cash flow problem. If one believes in the excuses management provides so that the subsequent events still catch you by surprise, oh well.</p>

[daverhaas]

<p>Shun - </p>

<p>Being a member of many groups that have now ex-Calumet employees in them - I can honestly say that they were caught by surprise with the move. Managers were told Wednesday evening (late) not to open the stores on Thursday. </p>

<p>While the bankruptcy coming may not have been a surprise - the suddenness and timing of it certainly was. Apparently Calumet had difficulties making payroll one other time, and quickly made the checks good. So it's very possible that the rank and file employee bought the story that was passed on by management. </p>

<p>I've actually been at a company where an entire division (100-200 people) where let go on one day. The morning we were let go - none of us could log into our computers. Many of us figured out rather quickly that something not good was up and started faxing names, phone numbers, etc... to recruiters. About 10 minutes into the day a manager from another division came through and said "It's all a mistake - someone in security was cleaning up old ID's last night and your division's id's were inadvertently included" - People who I thought were intelligent and bright, bought that story hook, line and sinker. 10 minutes after that we were all invited to a mandatory meeting where we were all told we were fired. The security people had been given the wrong termination date.... </p>

<p>So, very believable that employees at the stores didn't have a clue what was coming - they were paid to show up, sell cameras and gear, and deal with customers. They were not paid to worry about a creditor who grew impatient and wanted to get paid now. </p>

<p>Dave</p>

<p> </p>

[Two23]

<p>I think what hurt Ritz was the rapid decline of in store photo finishing. They were always pushing that hard, and prices were high too! They also had too many sales people who were clueless, and obviously paid to push their generic line of lenses. Even though I live in a small city, we have a local retail chain that seems to be doing quite well. There's always paying customers and a short line at the counter. They stock Nikon, Canon, Tamron, and some point & shoots. They also offer film processing on 120 & 35mm. That's the main reason I go there, but sometimes I need to pick up a few items I've run short on. They also gave me a very competitive deal on a Nikon D7100 a year ago. I think I was the first one in my state to get one.</p>

<p>Kent in SD</p>

[helen_oster]

<p>When I joined Adorama Camera in 2007, my manager advised that from time-to-time customers might contact me, not altogether happy that Adorama was closed on Saturdays.<br>

As Calumet was considered to be a reliable and worthy competitor, I could recommend them as an alternative. <br>

Very sad.....</p>

<p>Helen Oster<br>

Adorama Camera Customer Service Ambassador<br>

helen@adorama.com</p>

[thomas_kroljic1]

<p>Hello all,<br>

I live in Philadelphia and have been using the Calumet store for the last 10 years for my rentals and chemistry. Does anyone have any suggestions on where I should go now to a) rent lenses and b) purchase chemicals and paper?<br>

I occasionally travel San Diego where I would also rent from Calumet in Escondido. Any suggestion for that area too would be helpful.<br>

Thank you,<br>

Thomas</p>

[tiffaney_vazquez]

<p>OMG this is so hard to read. I took my lighting equipment to get fixed and I have had no luck speaking with anyone. I can't believe this. Has anyone heard how to get our equipment back?</p>

[daverhaas]

<p>I believe there was a number posted on the doors of the stores for a lawyer to call. She is the receivership attorney for calumet. All items have to go through her. I don't have the number any longer. </p>

<p>Dave</p>