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Ultimate Electronics didn't give money from CD sales to charities

7:20 PM, Feb 9, 2011   |    comments
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  • Ultimate Electronics moves to liquidate all stores nationwide
  • Ultimate Electronics' parent company files for bankruptcy
  • Ultimate Electronics has failed to pay Clear Channel-Denver and KBCO radio any proceeds from the sales of KBCO's extremely popular Studio C CDs from this year's sale, according Clear Channel officials.

    The CDs, which went on sale Dec. 4, typically sell out in days at Ultimate Electronics stores.

    The lack of those proceeds and unpaid bills for advertising left Clear Channel's operations with a $360,000 budget hole, according to bankruptcy paperwork filed in federal court.

    KBCO's Studio C name appears on a consolidated list of Ultimate Electronics creditors holding the 30 largest unsecured claims.

    "Ultimate Electronics collected the dollars, and was supposed to pay us," Clear Channel-Denver General Manager Pat Connor said. "Unfortunately, that did not happen."

    Connor and his team decided it was best to pay the Boulder County AIDS Project and the Food Bank of the Rockies the money promised.

    "We made the decision to make the charities whole," Connor said. "It's the right thing to do."

    Wednesday's $80,000 donation to the Boulder County AIDS Project from KBCO helps make up roughly 10 percent of the charity's budget.

    "I'm not surprised at all," Boulder County AIDS Project Development Director Dan Hanley said about KBCO's donation. "They are 100 percent committed to our community."

    Similar praises came from Food Bank of the Rockies officials, who accepted a $20,000 donation from KBCO Wednesday.

    "We didn't know about this. We just got the check," Food Bank of the Rockies spokeswoman Janie Gianostos said. "We're really grateful for the donation. But we're amazed they would do something this kind and make up for something they didn't have in the bank themselves."

    Clear Channel-Denver will have to get in line with other creditors in court. Whether the company will collect on the $360,000 still owed from Ultimate Electronics is now up to a Federal Bankruptcy Court in Delaware.

    Calls to Ultimate Electronics Headquarters went unreturned Wednesday.

    (KUSA-TV © 2011 Multimedia Holdings Corporation)

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