The receivers are in at SA-based EzyDVD, which claimed to be Australia’s biggest online entertainment retailer.
Receiver Ferrier Hodgson says the company has 70 full-time staff in South Australia and about 150 casual employees nationally. The chain’s problems appear to have been caused by its significant debt burden and a trading slowdown in recent months, Ferrier Hodgson said.
It added that the company’s 58 outlets across Australia would continue to operate normally while an urgent assessment is undertaken and the business is offered for sale.
EzyDVD last year attempted to put together a deal with ReelTime Media that would have seen video-on-demand downloads sold direct to EzyDVD customers.
But ReelTime ran into problems of its own and in November this year EzyDVD MD Jim Zavos said the service, rebadged EzyDownload, had been shelved due to market conditions caused by the global financial crisis, leading to withdrawal of a private equity injection.