Xtra-vision enters receivership

Irish entertainment rental and retail firm Xtra-vision has fallen into receivership after being "unable to meet its debts".

The chain has 152 stores and 1,023 employees, according to Retail Week. It is unknown how many jobs will be lost.

Xtra-vision cited steep declines in the movie rental business for its entry into receivership. Troubles in this market also caused UK rental chain Blockbuster to enter administration back in January.

While Blockbuster was bought by the Gordon Brothers last month, Ernst & Young has been appointed as the retailer’s receiver. The firm has pledged to "ensure that the Company continues to trade as normal, with a view to selling the business as a going concern".

"We are advised that the majority of stores are profitable and collectively will be attractive to potential purchasers," said Luke Charleton, joint receiver at Ernst & Young.

"We will work closely with management to assess the viability of each of the Company’s stores.

The joint receivers will be briefing all staff and contacting suppliers to ensure that trading continues as normal. The brand has transitioned itself from being primarily a movie rental company to one of a broad-based provider of movies, games and the full spectrum of home entertainment products.

We will 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.”

Ernst & Young has promised that Xtra-vision gift cards, savings club amounts and cash deposits will still be honoured.