Thornton-based Ultimate Electronics on Wednesday said it will outsource portions of its service department, leading to layoffs within the company.
The privately held company declined to say how many people will lose their jobs as a result of the move, which involves workers at the company’s headquarters and at smaller service centers throughout the nation.
The cuts are rumored to affect at least 100 people.
“Obviously, this affects a lot of people and their families, and we are trying to be sensitive to that,” said Ultimate Electronics president Randy Baumberger.
The company opted to outsource the work in an effort to improve the department’s speed and service, he said.
“We’ve been in the service business for a long time, and frankly, we’re not the best at it,” Baumberger said.
The company will continue to honor its warranties, and repair work will be handled by outside contractors.
Ultimate Electronics will continue to maintain a customer- service call center to guide customers through the repair process, Baumberger said.
“The only difference is customers who brought products to us will experience a faster return time and better service,” he said.
Ultimate Electronics has aggressively tried to reposition itself since Hollywood Video founder Mark Wattles purchased the company out of bankruptcy last April.
When it filed for bankruptcy in January 2005, the company reported 2004 revenues of $705.7 million and a net loss of $37.7 million. Its total debt was $82.5 million.
Wattles took the company private, shuttered half its stores and laid off 900 of the chain’s 2,500 employees. The company also converted its 11 Colorado stores from SoundTrack to the Ultimate Electronics name.
The company operates 32 stores in nine states but declined to say how many people it employs.
Staff writer Kristi Arellano can be reached at 303-820-1902 or karellano@denverpost.com.
