by Christopher Freeburn | April 8, 2013 12:26 pm
The operator of portrait studios at two major retail chains has shut down after failing to pay back its creditors.
CPI (PINK:CPIC), which had run portrait studios at 3,000 retail locations across the U.S. for more than six decades, saw sales dwindle as consumers switched to their own digital camera equipment to take family photos. The company’s demise closed portrait studios at all Sears (NASDAQ:SHLD) stores and some Walmart (NYSE:WMT) locations, the Los Angeles Times notes.
After naming a new CEO last year, CPI saw its third-quarter sales drop to $69.5 million, down 26% from the prior year. It posted a $20.2 million loss for the quarter.
Walmart and Sears said that they were working with CPI to ensure that outstanding customer orders would be delivered before the company is liquidated.
The trend of people using smartphones and digital cameras to take pictures of meals eaten while dining out for posting on social media websites has become sufficiently prominent that some restaurants are now banning the practice.
Shares of Walmart rose fractionally in Monday midday trading, while shares of Sears dipped. Shares of CPI fell 3% in over-the-counter trading.
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