The nation’s largest online DVD retailer, EzyDVD, last month fell into receivership after suffering debts of $18 million, leaving staff in 65 stores doubtful about their future.
In some good news for the retailer, the Franchise Entertainment Group, who is responsible for the Blockbuster and Video Ezy rental brands in Australasia, has bought out the chain for approximately $10 million.
The Franchise Entertainment Group says it will retain the existing EzyDVD brand and will continue operating roughly 40 of the stores that did not close over the receivership period.
EzyDVD’s head office, warehouse and distribution facility in Torrensville, South Australia, however will be closed down in approximately three months.
But the Franchise Entertainment Group is still very optimistic about its purchase and sees the company as a perfect fit into its existing portfolio.
EzyDVD evidently suffered due to the downturn in the Australian economy, and gained substantial operating losses. But the company on average still gains revenue of around $20 million a year.
Paul Uniacke, director of Franchise Entertainment Group, has expressed enthusiasm about the retailer’s prospects and says “EzyDVD would maintain its position as a market leader because of its strong customer base”.