The owners of Xtra-vision are to invest up to €8m (£6.9m) in the Irish entertainment retailer, which emerged from creditor protection last week.

Xtra-vision will trade from 164 shops following its exit from examinership, which is similar to Chapter 11 in the US.

The retailer, which chief executive Peter O’Grady Walshe originally sold to Blockbuster before leading its acquisition in 2009, had been caught in a pincer movement of falling sales during harsh trading conditions and upward-only leases.

The examinership enabled the retailer to shut 24 shops – some of which were not trading and others loss-making – and exit the associated lease liabilities.

Owner Birchall Investments will make further improvements to Xtra-vision’s IT systems as it extends its digital services.

The retailer said that the changes made under examinership “have resulted in a significant reduction in the company’s cost base that better reflects the realities of the retail environment in Ireland”.

Xtra-vision’s customer database and its “unique brand association with home entertainment in Ireland” are among the factors that make the business well-positioned for the future, the retailer said.