Future of Dundalk Xtra-vision store in doubt after company appoints liquidator
For the second time in less than three years the future of the Dundalk branch of Xtra-vision is in doubt.
A provision liquidator was appointed to the move rentail chain by the High Court today, putting the future of the business in doubt.
Mr Justice Paul Gilligan heard that the bulk of the 580 full and part-time jobs at the company are to be lost.
The local store, located in a unit at the Exchange Building on the Long Walk, previously closed its doors in May 2013 but had its future secured the following month.
This time around it is expected there will be little reprieve for the staff who work there with the store having been closed earlier today. Its closure will also spell the demise of the HMV brand locally after it reopened in Xtra-vision in November 2013.
The company’s owners, UK-based Hilco Capital, petitioned the court for the appointment of Michael McAteer of Grant Thornton Ireland as the provisional liquidator of Xtra-Vision Entertainment Ltd.
The company operates more than 80 outlets in both the Republic and Northern Ireland, and related company Xtra-Vision Ireland Ltd which owns the stock.
Mr Justice Gilligan, who described the situation as unfortunate, appointed Mr McAteer after being told the movie rental firms were insolvent and unable to pay their debts.
The company cited the rapidly declining movie rental market and poor Christmas sales as the reasons why it is seeking to go into liquidation.
The appointment of a provisional liquidator would aid the orderly winding up of the company, the court heard.
Edward Farrelly Bl for Xtra-Vision said the appointment of a liquidator would result in some of the jobs being saved but it was accepted that most of the company’s employees would have their employment terminated.
He added that any gift vouchers issued by the company will be honoured.
Xtra-vision was sold by to Hilco Capital Ireland in June 2013 for an undisclosed sum. In August of that year, Hilco also announced that 26 Xtra-vision stores would be dual-branded with HMV.