THERE was more bad news for Dundalk film fans with Xtravision announcing that it has gone into receivership.
Should Xtravision close, it would mean that other than Tesco, there will be no dedicated outlet for DVD sales in the town.
Hopes are now fading that HMV will return to the Marshes, and now Xtravision face an anxious wait to see if a buyer can be found for the struggling business. All of the video rental and games company’s stores are to remain open while a buyer is found by receivers Ernst & Young. According to sources, the withdrawal of credit insurance and a downturn in rentals led to decision. Retail Excellence Ireland, which represents retailers, blames the Government’s “lack of focus” on the needs of the domestic economy.
In a statement, the company said that it has become unable to meet its debts as they fall due as a result of the withdrawal of trade credit by a number of its key suppliers.
Xtra-vision has been negatively affected by the rise in online streaming of movies and digital piracy.
‘’While the company’s retail business continues to grow, its 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 statement added.
The company is 60% owned by a firm called Birchhall Investments and 40% owned by NCB Ventures, which is made up of a series of private investors.
Xtravision employs 1,024 people across the island of Ireland.