All Xtra-Vision stores are closing with immediate effect.

The announcement comes after a liquidator was appointed by the High Court.

More than 500 jobs are likely to be lost as a result of the move.

Oxtermont Ltd, the holding Company of Xtra-Vision, says the move is a direct result of the market decline of shop-counter rental.

This has resulted in a 30% drop year-on-year in over the counter DVD rental.

Grant Thornton has confirmed that Michael McAteer has been appointed provisional liquidator and that their first priority is to meet and brief employees at all 83 locations and process their entitlements for redundancy.

The liquidator will also be in contact with all of Xtra-Vision's creditors.

They say Xtra-Vision gift vouchers will be honoured by HMV, which is not affected by this liquidation.