There might be a debate over its exact influence, but it seems pretty certain that illegal downloading was a factor in Xtravision’s current woes.

The group, made up 152 stores throughout Ireland, is for sale as a going concern after its parent and main creditor was forced to appoint receivers to the business yesterday.

The immediate reason was the withdrawal of credit insurance, which prompted suppliers to withdraw credit. However the group’s own statement makes it clear that the underlying cause was a faster than expected decline in DVD rentals, which accounts for 40 per cent of the business.

Concerns about this trend prompted insurers to act, setting in motion the chain of events that led to the appointment of Luke Charleton and Colin Farquharson of Ernst & Young as joint receivers.

Xtravision’s statement says that the trend was most obvious in areas with high-speed broadband, those places where it is easy to download material from the web.

The group draws a clear link between this and illegal downloading. This might seem like it is looking for a convenient scapegoat. However, a report: Illicit Trade in Ireland, issued yesterday by Grant Thornton, helps to bolster its case.

It estimates that retailers, including Xtravision, will lose €260 million this year as result of the practice, while the State will have to do without €40 million in Vat receipts. Legitimate downloading services are also a factor, but the soundings given by Xtravision yesterday suggested that the big problem was piracy.

One of the points that Grant Thornton makes is that illegal downloading is seen as a “victimless” crime because many of those distributing copyrighted material free on the web do not get paid.

This may - or may not - be tied into fuzzy ideals about the internet being a brave new world where all innovation is shared for free.

It ignores the fact that while the downloaded film may be free, the means of downloading are not, so somone is profiting. As for the crime being victimless, well, Grant Thornton estimates that it will lead to the loss of 7,375 jobs by 2015.