Feb. 25 (Bloomberg) -- Ritz Camera Centers Inc., the largest camera-store chain in the U.S., won court approval for $85 million in financing from its existing secured lenders while it reorganizes.

U.S. Bankruptcy Judge Mary Walrath in Wilmington, Delaware, authorized the so-called debtor-in-possession financing on an interim basis. A March 19 hearing has been set for final financing approval, according to court papers filed today. Wachovia Bank NA is agent for the lenders.

Ritz filed for bankruptcy protection Feb. 22, blaming the deepening U.S. recession and a consumer transition to digital photography. The 91-year-old company, which had sales of almost $1 billion in 2008, has both assets and debt of less than $500 million, according to Chapter 11 papers.

Ritz has about 800 locations in more than 40 states, including the Ritz Camera chain, Wolf Camera, Kits Cameras, Inkley’s and the Camera Shops. The Beltsville, Maryland-based company experienced a drop in photo printing, as well as slumping sales at its 130 Boater’s World Marine Centers, which were hurt by last year’s record oil prices, court papers show.

The case is Ritz Camera Centers Inc., 09-10617, U.S. Bankruptcy Court, District of Delaware (Wilmington).

To contact the reporter on this story: Dawn McCarty in Wilmington, Delaware, at dmccarty@bloomberg.net.

Last Updated: February 25, 2009 12:34 EST