A LARGE number of landlords of Xtra-vision stores have agreed to vary rental lease agreements with the chain, the High Court heard yesterday.

Rossa Fanning, for the company, which went into examinership earlier this year, told Mr Justice Brian McGovern that landlords of 83 stores had agreed to variations of their lease agreements.

The company has brought court applications to repudiate lease agreements with more than 25 other premises and some of those may be contested by the affected landlords.

Agreement on leases is required to allow the examiner put together a survival scheme for the company, the court has heard.

The company, which has 180 stores and employs about 1,300 people across Ireland, was granted court protection from creditors last April after it said it was insolvent and unable to pay its debts as they fell due. David Hughes, of accountancy firm Ernst and Young, was appointed examiner of Xtra-vision Ltd.

Xtra-vision said its difficulties were caused by factors including falling revenues, a decision by two providers of trade credit insurance to Xtra-vision’s suppliers to withdraw their coverage, and poor trading figures caused by the bad weather over Christmas and the new year.

High rents were also cited as being problematic. Since entering examinership, the company has applied to repudiate a number of lease agreements for premises where Xtra-vision operates stores.

The judge agreed yesterday to adjourn for one week motions concerning more than a dozen premises where Xtra-vision is seeking to repudiate lease agreements.

Counsel said contact had been made with most of the landlords and many of the discussions had been positive and “may bear fruit”. However, it was believed some landlords would contest the repudiation applications.

The court gave the company permission to issue motions seeking repudiation of leases in relation to 13 other premises.

The examiner has up to 100 days to devise a rescue plan for the company which will then be put before creditors and the High Court. Cian Ferriter, for the examiner, said it was important that issues with landlords were sorted out.

US firm Blockbuster sold Xtra-vision to Irish firm Birchall Investments in 2009 and Birchall is prepared to invest another €6 million in the company if a scheme of arrangement is approved, the court heard.