now ezydvd goes belly up itself!

EzyDVD placed in receivership
AdvertisementEmail Print Normal font Large font December 17, 2008 - 3:54PM

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A downturn in sales in recent months has forced DVD retailer EzyDVD into receivership.

The Adelaide-based company has 58 outlets across Australia including 26 company-owned stores and 32 franchised outlets.

Only company-owned stores, which employ more than 200 staff, had been placed in receivership.

Ferrier Hodgson partner David Kidman was appointed receiver and manager of the company on Wednesday.

As well as a sales slump, Mr Kidman said EzyDVD's financial difficulties stemmed from a significant debt burden and substantial operating losses in 2007 and 2008.

He said all EzyDVD stores would operate normally while an urgent assessment of the company's trading position was undertaken and the business offered for sale.

"EzyDVD has established a leadership position in its marketplace through providing easy access via internet purchasing and a significant store network to a very broad range of DVDs at competitive prices," he said in a statement.

"We are keen to keep the business operating in this peak buying period."

EzyDVD employs 70 full-time staff in its Adelaide warehouse and distribution facility and in management roles with its company-owned stores.

The company also employs about 150 casual employees across the country.