Over one hundred jobs are under threat following an announcement that the entertainment retailer Xtra-vision is to close 20 stores across Ireland.
The company, which went into receivership late last month, will shut nine stores in the Republic and 11 in Northern Ireland, affecting a potential 112 jobs. However, many of those positions will be relocated to other branches.
In a statement yesterday, the joint receivers at Ernst and Young said the decision had been taken due to "unsustainable trading losses resulting from a fall in revenue".
They are continuing to seek a sale of the business and its assets as a going concern and are in negotiations with “a number of interested parties”.
“It is regrettable that we have had to schedule these store closures and we are extremely grateful to the employees and management at all the stores for their loyalty and support during what has been a very difficult and uncertain time,” said joint receiver Luke Charleton.
“We are keen to stress that those stores unaffected by these closures will continue to trade as normal.”
The stores to close in the Republic are Tallaght, Rathmines, Baggot Street, Swords, Roscrea, Ongar, Sandymount, Phibsborough and Carpenterstown, affecting 54 jobs.
In Northern Ireland, branch closures at Newtownards, Lisburn Road, Downpatrick, Glengormley, Antrim Road, Coleraine, Newry, Carryduff, Shore Road, Holywood and the Ormeau Road will affect 58 positions.
Before yesterday’s announcement, the retailer had continued to employ 1,023 people but has increasingly felt the pressure of a changing industry, affected for the most part by online film downloads.
An April 29th joint receivers Luke Charleton and Colin Farquharson were appointed, with the withdrawal of credit insurance and a downturn in movie rentals cited as the principal reasons.
Although the company generated Ebitda of €1.5 million in 2012 and is forecast to do so again year, it had become unable to meet its debts as they fall due to the withdrawal of trade credit by key suppliers.
Gift cards issued by the chain were unaffected, unlike the scenario faced by customers of the now defunct Irish operation of HMV.
