US owner may be close to selling Xtra-vision

THE FUTURE status of entertainment chain Xtra-vision was uncertain yesterday as the firm’s US owner appeared close to a sale of the group.

The identity of a buyer was unclear but sources indicated that advanced due diligence was continuing. Xtra-vision is owned by US-based Blockbuster, a worldwide chain of entertainment outlets best-known for movie rental.

A spokesman for Blockbuster in Dallas yesterday declined to confirm that a sale of Xtra-vision was being agreed, saying he would not comment on “specific rumours”.

He acknowledged the firm had been exploring the sale of its international assets, with a focus on licensing its businesses in those countries where it operates under the Blockbuster brand. Xtra-vision is the only Blockbuster asset not to trade under its parent’s name.

Filings made to the Companies Office show the firm has moved to satisfy financial charges over recent weeks, suggesting a streamlining of its accounts, perhaps to satisfy a purchaser.

Martin Higgins, head of Xtra-vision, did not respond to calls yesterday but it is thought possible that he would leave Xtra-vision in the event of a sale, remaining with Blockbuster’s European business.

Xtra-vision operates from more than 200 outlets across Ireland and has almost 1,600 employees.

The firm has shifted within the past few years from pure film rental to offering, in addition, film sales, game rental and sales, and mobile phone sales. This move, in line with Blockbuster’s “multi-platform” strategy, comes as competition heightens in the home entertainment market with the increased sophistication of cable television packages.

Tough market conditions were highlighted earlier this year when Xtra-vision competitor Chartbusters entered examinership.

The latest accounts to be filed for Xtra-vision in the Republic show a drop in profits of almost one-quarter between 2006 and the start of 2008. Sales at that stage amounted to €158 million, a slight increase on the previous year.

Xtra-vision was founded by former motorcycle courier Richard Murphy in 1982, and subsequently floated on the Iseq.

After his departure, Mr Murphy went on to found Chartbusters.