Chartbusters set to appoint liquidator

THE FUTURE of DVD rental chain Chartbusters hangs in the balance just 18 months after the High Court approved a rescue plan for the troubled company.

The company is understood to be preparing to appoint a liquidator to wind up the business, which operates about 20 stores and employs an estimated 170 full- and part-time staff in the Republic.

Chartbusters began as a DVD rental outfit in the early 1990s, but branched into internet kiosks and tanning booths as competition put this business under pressure over the last decade.

Sources said yesterday that its DVD operation has continued to decline this year, while controversy over health risks has hit demand for tanning booths.

A number of local authorities and businesses have registered judgments against the company in recent moths. These include Ardkeen Shopping Centre in Waterford, which has two judgments totalling almost €75,000; and South Dublin County Council, to which it owes €62,000.

The High Court placed the business in examinership early last year.

At the time, it had a €4 million shortfall between its assets and liabilities.

The court approved a rescue plan last April that involved revoking a number of leases on premises it no longer needed and paying unsecured creditors between 2½ and five cent in the euro.

Builder John McCabe took a majority share of the company in return for fresh investment, while its founder, Richard Murphy, left the business.

Attempts to contact Mr McCabe and the firm’s other directors were not successful.

It is understood that the company told workers of its difficulties yesterday. It has a core full-time staff and a large number of part-time employees.

Sources also said that the directors are likely to propose the appointment of Tom Keane, a partner with Dublin accountants, BKRM, as liquidator to Chartbusters.

He was not available to comment last night.