The DVD rental chain Chartbusters has confirmed it is to close its 16 stores with the loss of 22 full-time and 65 part-time jobs.
The announcement follows a decision by the directors of Chartbusters Ltd to initiate a voluntary liquidation.
Today’s announcement comes just 18 months after the High Court approved a rescue plan for the firm.
The company said that despite its best efforts it had been unable to implement sufficient reductions in costs and overheads to offset losses resulting from the economic downturn.
A statement said the firm had held discussions over several months with interested parties over a possible sale of some of the Chartbusters stores but encountered difficulties due to unsustainable high rents and upwardly only rent review clauses in the leases.
Chartbusters began as a DVD rental outfit in the early 1990s, but branched into internet kiosks and tanning booths as competition put this business under pressure over the last decade.
A number of local authorities and businesses have registered judgments against the company in recent moths. These include Ardkeen Shopping Centre in Waterford, which has two judgments totalling almost €75,000; and South Dublin County Council, to which it owes €62,000.
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.
A creditor’s meeting has been called for November 12th at which point a Statement of Affairs will be presented.