6th Ave. Electronics stores have been ordered temporarily closed because of defaults on payments to its main creditor.
That includes retail stores on Route 1 in Woodbridge and Route 17 in Paramus, a store, distribution center, and corporate offices in Springfield, and a warehouse facility in Somerset.
The shuttering of the stores was ordered by the U.S. District Court earlier this week after the electronics retailer failed to make scheduled payments to GE Commercial Distribution Finance Corporation.
6th Ave., a privately held company owned by the Temiz family, had initially defaulted on $2 million payments on Sept. 12, according to a story on twice.com. The company gave up some of their inventory on Sept. 21 to GE to satisfy part of the debt, but then failed again to make payments scheduled later in the month.
GE estimated in court documents that 6th Ave.'s remaining inventory was worth approximately $12 million; they said that 6th Ave. owed more than $5.8 million, less the value of the inventory they surrendered in September.
In court papers, attorneys for GE said that they wanted electronics dealer's retail locations closed because of the "mobile nature" of small electronics. That is, they were afraid that while they were trying to get payment from 6th Ave., the retailer would be busy selling off their inventory - the collateral GE is banking on - in their remaining retail stores.
In late September, Toshiba also filed a lawsuit, claiming 6th Ave. owed them $1.2 million, according to a story filed by cepro.com.
Attorneys for GE did not return phone calls. No one is answering the phones at any 6th Ave. locations, including at their corporate offices.
Earlier this year, the retailer closed physical stores in Deptford, East Brunswick, and an older retail location in Paramus. Most of the chain's retail outlets have been shuttered beginning in 2009, finally leaving only the Woodbridge and Paramus stores open until the court ordered them temporarily closed this week.
Their online website is still up, but none of the items seem to be in stock. Links on the 6th Ave. website selling cameras, home theatre systems, and other A/V equipment that would normally redirect to Amazon.com, where they have sold some of their items in the past, are non-functioning.
The last time the 6th Ave. sale flyer on their website was updated was Sept. 26.
There are no indications on the 6th Ave. website that the retail chain is in any kind of distress. Every item page, though, has a bright red banner at the top: "Celebrating our 27th year in business, over 10 million customers served."