British DVD and music retailer ChoicesUK has called in the administrators and suspended trading in its shares on the AIM section of the London Stock Exchange.
ChoicesUK has 170 outlets focusing on DVD and computer games for sale and rental. The company has an online-mail order division, ChoicesUK.com, which sells DVDs, music and games.
The company, which says it has 1,800 staff, had recently warned of bigger-than-expected losses despite cost-cutting measures, which included job cuts and the closure of 55 branches.
ChoicesUK issued a statement in April confirming its poor trading performance in a tough DVD market, blaming its results in part on the unseasonably warm weather.
However, it remained optimistic after recent tie-ups with several high street retailers to supply rental DVDs.
Directors said today that they had been exploring the potential sale or re-financing of ChoicesUK as a going concern.
“However, despite extensive negotiations, it has not been possible to reach an agreement on terms acceptable to all parties,” the company said in today’s statement. “Therefore, the directors have decided that it is in the best interests of the creditors to seek to appoint administrators as soon as possible.”
Shares were suspended at 7.30am today at 10.25 pence. The shareprice peaked at 264.25 pence in April 2002, following flotation in October 2001.
The company was founded in Peterborough in 1985 to exploit the boom in video rentals. In the six months to February, the company reported a pre-tax loss of £2.6 million ($5.2 million).
ChoicesUK is the latest in a string of closures for U.K. entertainment chains. One such retailer, Fopp, went in administration at the beginning of July, closing 71 stores. HMV has since bought the Fopp brand and will re-open at least six of its stores.
