Report: ChoicesUK Suspends Trading21 Aug, 2007 By: Erik Gruenwedel
ChoicesUK, Britain's No. 2 movie rental service behind Blockbuster Inc., Aug. 21 reportedly suspended trading of its stock after the company was unable to restructure its finances.
The 160-store chain, which has been attempting to sell assets, said it would appoint new management “as soon as possible,” according to The Financial Times of London.
ChoicesUK's fortunes took a turn for the worse last April when the company warned it would “assess its strategic and financial options” after posting disappointing Easter sales.The founder, CEO and CFO all resigned thereafter.
“Until very recently, the directors were hopeful that a successful outcome would result,” the company told The Financial Times. However, “despite extensive negotiations, it has not been possible to reach an agreement on terms acceptable to all parties.”
The British brick-and-mortar movie rental business, under attack for some time from online rental services and piracy, earlier this year saw the liquidation of No. 3 rental chain, Apollo Video Film Hire, in addition to store closures by Blockbuster.