Australia's largest DVD retailer EzyDVD has been placed into receivership after a downturn in sales in recent months.
The Adelaide-based company has 58 outlets across Australia including 26 company-owned stores and 32 franchised outlets, but only the company-owned stores, which employ more than 200 staff, have 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.
Late last year, EzyDVD acquired the assets of Reeltime.tv for an undisclosed amount and planned to launch its own movie downloads site, ezydownload.com.au, in September of this year. However, the site is still not fully active and currently reads: "EzyDVD is planning to launch its new video download service in 2009".