Northern Ireland

Xtra-vision: Company placed into liquidation and ceases trading

The eight stores will close in the new year

The Xtra-vision DVD rental chain has been placed into liquidation and will cease trading on Wednesday.

According to its website, it has 11 branches in Northern Ireland though some are located within HMV shops.

Those shops are thought to employ around 60 people. The company operates a further 71 stores in the Republic of Ireland.

Oxtermont, the Dublin-based holding company of the chain, was placed into liquidation on Wednesday morning.

The company said the move was a "direct result of the market decline of shop counter rental".

"This has resulted in a 30% drop year on year in over the counter DVD rental," the firm said in a statement.

Analysis

In 2001, video shops in the UK made 198m rentals.

By 2014 that number was down to 36m and most of those were done through the post.

In that environment, it's surprising that Xtravision managed to stagger on as long as it did.

The liquidators Grant Thornton said their first priority would be to meet and brief employees at all 83 locations and process their entitlements for redundancy.

They added that over the coming days they will be in contact with all creditors of the company.

Any Xtra-vision gift vouchers will be honoured by HMV which is not affected by the liquidation.

Xtra-vision was bought by Hilco Capital Ireland in June 2013 for an undisclosed sum.

Hilco specialises in buying distressed retail businesses.

The company had previously been owned by Blockbuster and then an Irish investor.

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