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Hot off the Internet Presses is the announcement that EzyDVD has been purchased by the Franchise Entertainment Group.
Receivers say 30 South Australian jobs will be lost through the sale of Australia’s largest online DVD and entertainment retailer, EzyDVD.
The company went into recievership last month with debts of more than $3 million.
Receivers Ferrier Hodgson say the company has been sold to the Franchise Entertainment Group.
The jobs will go with the closure of the head office and warehouse of EzyDVD at Torrensville in Adelaide’s west within the next three months.
The Franchise Entertainment Group (FEG) operates both the BLOCKBUSTER® and Video Ezy brands in Australia and New Zealand. The group operates approximately 1,000 stores, most of which are franchised, and have gross revenues exceeding $700 Million per annum.
With multiple Video Ezy, Blockbuster and EzyDVD in close proximity within shopping districts, I can only predict that this move will put more pressure on, what must be, the already beleagured EzyDVD Franchisees.
It’s a shame really. Franchisors are not required under Australian Franchise laws to divulge their financial standing or performance. The only time a Franchisor is required to provide financial statements is if they are a Publically Listed company.
It is exactly this issue that has led many, unsuspecting, franchisees to invest their money into a system – as they are ‘sold the dream’ with little evidence to support the claims.
I feel for the existing EzyDVD franchisees and wait in quiet anticipation as the full repercussions of the EzyDVD sale to the Franchise Entertainment Group become clear.