Xtra-vision
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| File:Xtra-vision logo.png | |
| Industry | Video rental |
|---|---|
| Founded | 1979 |
| Founder | Richard Murphy |
| Headquarters | Dublin, Ireland |
| Owner | Hilco Capital Ireland |
| Website | http://www.xtra-vision.ie |
Xtra-vision is Ireland's largest chain of DVD/Blu-ray rental stores and entertainment retailing company, founded in 1979 by Richard Murphy. It was previously operated by US company Blockbuster. The stores in Ireland now trading as HMV/Xtra-vision, offering many of the same items as the bigger HMV stores.
Contents
History
Xtra-vision went into financial difficulties in the 1990s . The company went into receivership and was bought by businessman Peter O'Grady Walshe who later sold on the company to US giant Blockbuster.[1]
The chain was run by Blockbuster from 1996, the chain never rebranded, citing market research that the Xtra-vision name was better known and more respected than Blockbuster. Even in Northern Ireland the Blockbuster name was not used as it is in the rest of the UK. The few Xtra-vision stores outside Ireland — those in Manchester, London and New Hampshire were rebranded to Blockbuster after the takeover.
The company was involved in what was once Ireland's largest corporate insolvency, with massive expansion of their retail network causing a massive increase in their stock price on the Irish Stock Exchange. The company's value reached IR£27 million, but the low turnovers in the video rental market meant that there was no cash to continue their huge expansion—up to 10 new stores a week—and the company became insolvent with its shares valued at 1/8 of a penny on its sale to Cambridge Investments, who in turn went bankrupt and the business was sold for IR£12m to a consortium of Montague Private Equity, 3i, and the partners behind NCV (a local wholesaler of videos, etc..). Less than 2 years later the consortium sold out to Blockbuster. The failure of the group, in both guises, was notable enough to be mentioned in Dáil debates in 1994.[2]
The company has an exclusive deal meaning that any movie with funding from the Irish Film Board will initially be provided for rental and sale solely through their network of stores.
In August 2009 Blockbuster sold off its Irish operations to Birchhall Investments.
In May 2011 the company went into examinership but successfully exited in August[3]
Receivership and sale to Hilco
On 29 April 2013 the company announced that it was to enter receivership with Luke Charleton and Colin Farquharson, of Ernst & Young.[4] On May, 07, 2013 the receivers announced that 20 stores will close throughout Ireland with a loss of up to 120 jobs. These stores were closed due to trading losses because of fall in revenue.[5] Xtra-vision was sold to Hilco Capital Ireland in June 2013 for an undisclosed sum.[6] On 30 August 2013, Hilco announced that 26 Xtra-vision stores would be dual-branded with HMV).[7]
Xbox One release controversy
When the Xbox One was released, Xtra-vision gained negative media attention due to their policy of forcing customers who had pre-ordered the console to purchase an additional game in order to get their console. After media attention and backlash on social media websites, Ireland's National Consumer Agency launched an investigation into Xtra-vision's practices. Xtra-vision has since reversed this policy, and announced that refunds are available for those who have already purchased an additional game with their pre-ordered console.[8][9][10]
References
- ↑ [1][dead link]
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