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WAYNE, N.J. - Electronics Expo, the northern New Jersey A/V specialty chain, filed for Chapter 11 bankruptcy protection on Easter Sunday, blaming stricter vendor pricing policies and delayed instant-rebate credits for its woes.
According to documents filed last week with a federal bankruptcy court in Newark, new MAP and UPP strictures by Expo's biggest TV suppliers - plus limits on which lines and models can be sold through third-party websites - led to declining revenue and cash flow and growing operating losses beginning in 2012.
President/CEO Leon Temiz said in court papers that the chain was also impacted by vendor delays in issuing credit for instant rebates, which tied up his company's working capital and choked cash flow.
Compounding the problem was a sharp decline in vendor promotional support as TV manufacturers contended with steep losses of their own, he said.
Temiz acknowledged in the filings that Electronics Expo's business model was based...