Pay for 740 staff at entertainment retailer Xtra-Vision averaged €10,100 per annum through 2013. The payroll total was for 24 people in management, 37 people in administrations and 679 shop workers.

The High Court has appointed Michael McAteer of Grant Thornton as provisional liquidator of Xtra-Vision Entertainment Ltd and Xtra-Vision Ireland Ltd, at the request of the company’s owner, Oxtermont Ltd, which is turn is owned by American company Hilco Capital.

The court heard that the retailer currently employs 583 people full and part-time, most of whom will lose their jobs.

Xtra-vision was bought out of receivership by Hilco for a €2,370,000 in June 2013. Turnover from April to December 2013 amounted to €39.1m and the operating profit before inter-company charges was €1.7m. Once payments to Hilco were factored in, the net profit was €13,000.

The High Court was told that in 2015 turnover declined by €12.4m from the previous year.

In Association with

Hilco’s game plan was to beef up the Xtra-Vision store offering by integrating the HMV brand into 32 of the 95 stores purchased. However, the shift to digital by consumers for film and music was quicker than Hilco anticipated.

Of total creditors of €7m at end December 2013, €636,000 was listed for trade creditors. End-year Vat and payroll tax creditors amounted to €1.5m.

Oxtermont, the Xtra-Vision parent company, also owns HMV Retail Ireland Ltd. The Xtra-Vision and HMV businesses combined had turnover of €48.8m from April to December 2013, generating an operating profit of €3.1m. The net profit was €112,000 after group inter-company charges were accounted for.

Revenue Decline

The Sunday Business Post reported that Xtra-Vision's turnover in 2014 was €50.9m, with an operating profit of €650,000. Sales declined to €38.5m in 2015 and the company was expecting an operating loss of €2.8m in 2016.

According to the Post, Hilco had originally advanced €2.5m in working capital. This was topped up to €4.5m in March 2015 and to €5.5m in October 2015. In December 2105, revenue was down 25% on a year earlier and 30% below budget.

Industry observers believe there is next to zero chance of McAteer finding a buyer for Xtra-vision’s retail business, though the brand name should attract interest from online retailers.

So it’s mostly the end for a business started by motorbike courier Richard Murphy in the 1980s that briefly enjoyed a listing on the Irish Stock Exchange.