Xtra-vision appoints receivers
Stores to remain open while a buyer is found
A receiver is set to be appointed to Xtra-Vision later today.
DVD rental store Xtra-vision, which employs 1,023 people across the island of Ireland, has appointed joint receivers.
Luke Charleton and Colin Farquharson of Ernst and Young were today appointed receivers to the group. All of the stores will remain open while a buyer is found.
The withdrawal of credit insurance and a downturn in rentals are said to have led to the decision to appoint a receiver.
Although Xtra-Vision generated EBITDA of €1.5 million in 2012 and is forecast to do the same this year, it has become unable to meet its debts as they fall due to the withdrawal of trade credit by a number of key suppliers.
The directors of Xtra-Vision said “the movie rental business has declined more rapidly than anticipated most noticeably in areas with high speed broadband which is linked to high levels of illegal downloading.”
The company said all gift cards remain unaffected by the appointment of receivers, and are fully redeemable.
Retail Excellence Ireland, which represents retailers, blamed the Government’s “lack of focus” on the needs of the domestic economy.
“While we welcome the work of Government to promote Foreign Direct Investment (FDI), we believe a similar level of intensity and ingenuity must now be applied by Government to the needs of our domestic economy,” chief executive David Fitzsimons said.