Tue, 30 Apr 2013 | ADMINISTRATION
The Xtra-vision video rental business is to be put into receivership after the current owners have struggled to keep the business going.
The company is based in Northern Ireland and has a total of 42 stores across the region, which are essentially an equivalent to the Blockbuster chain that recently entered administration.
Ernst and Young has been appointed to handle the receivership and have said that they will work to find a buyer for the business if possible. Until a buyer is found, however, they will continue to run the company's stores.
Luke Charleton of Ernst and Young commented: “We are advised that the majority of stores are profitable and collectively will be attractive to potential purchasers.
“We will work closely with management to assess the viability of each of [the] company's stores.”
He added that Ernst and Young are due to “advertise the business seeking expressions of interest from third parties with a view to securing the early and successful disposal of the Xtra-vision, thereby ensuring the continuation of the business”.
The business has a total of 152 stores in operation across Ireland and employs over 1,000 people.
According to the receiver, the firm has more than 400,000 customers, but they are unlikely to be affected by the receivership, with all gift cards, cash deposits and savings club amounts due to be honoured.
The receivership is thought to have come about as a result of problems with suppliers, who were unable to secure credit insurance over the past ten days and therefore unable to extend credit to Xtra-vision, which stumbled as a result.
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