DVD rental chain ChoicesUK collapses

MORE than 1,800 jobs are hanging in the balance after ChoicesUK, the high-street DVD rental chain, collapsed into administration.

The group, which runs 170 stores across the country, said it had failed to secure a refinancing agreement acceptable to its bank, Lloyds TSB.

The directors have been in negotiations with potential lenders and buyers for the past two months.

Anthony Skitt, chief executive, said last night he was confident a buyer could be found and jobs would be saved.

ChoicesUK is the UK's second-biggest chain, behind Blockbuster, in the 330 million DVD rental market, which has gone into meltdown in the past two years amid rising piracy and online competition. The group was in the middle of a restructuring plan to close 50 stores.

It was expected to run up losses of 4.6m this year. Debts are thought to have snowballed to 13m.

In April, ChoicesUK shares fell 50 per cent after Skitt warned that the group would "substantially" miss financial targets this year.