21 Aug 2007


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DVDs take a hit

The DVD market has fallen on tough times as supermarkets increasingly take bite size chunks out of its business and piracy takes its toll.

Today, ChoicesUK said it was going to call in administrators after it failed to reach agreement on refinancing.

Even the recent weather failed to give it a lift. The business and city pages of leading websites had their own take on the story.

The Guardian noted that the company had £13m of debt and creditors were getting “impatient”.

City firm Hemscott pointed out that the administrators haven't yet not yet been appointed and the business is continuing to trade. Richard Ratner, retail analyst at Seymour Pierce, was quoted saying he wasn't totally surprised by ChoicesUK's situation and suggested Woolworths Group PLC could be interested in ChoicesUK's distribution business.

And the Financial Times commented that ChoicesUK's predicament is just the latest to affect the hard hit DVD market, following the collapse of Fopp, the leading independent chain of music retailers, in June, and before that MusicZone and MVC.

John Kirwan

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