THE FUTURE of Chartbusters is in question once again as a winding-up petition has been filed against the beleaguered DVD rental chain.
The company succeeded in emerging from examinership last April when a survival scheme was accepted by its creditors.
However, insolvency expert Kieran Wallace of KPMG has filed a winding-up petition against the company in his capacity as receiver over the assets of Michael Murphy and Mary Murphy. It is understood Chartbusters is a tenant in a building that forms part of their assets. According to a notice placed in the Irish Examiner yesterday, the petition is due to be heard on August 11th.
Chartbusters went into examinership in early 2009 with estimated debts of €20 million. In April last year, a scheme aimed at ensuring the survival of 28 stores in the chain and over 170 jobs was approved by the Commercial Court. The scheme provided that creditors would receive a maximum of 10 per cent of what they were owed.
The rescue plan provided for new investment and a new management structure that saw founder Richard Murphy stepping down from executive responsibilities. John McCabe, of McCabes Builders, came on board as a director.
The Chartbusters examinership case was one of the first to shine a light on the issue of the repudiation of leases, as the High Court allowed the chain to break leases on six premises.
Last month, Stubbs Gazette showed that a tax judgment for €37,107 was registered against the chain.
Chartbusters was incorporated in 1993 as a video rental business. As a result of competition and changes in technology, it diversified into internet services and tanning booths.
