Irish video rentals retailer Xtra-vision has gone into receivership putting 1,023 jobs at risk.

The 152-store retailer said the withdrawal of credit insurance meant it was “unable to meet its debts”.

Xtra-vision said it had suffered from a rapidly declining movie rental business “most noticeably in areas with high speed broadband which is linked to high levels of illegal downloading”.

The move follows that of fellow video rental retailer Blockbuster in the UK, which appointed administrators in January before being sold to Gordon Brothers last month.

Ernst & Young has been appointed receiver of the retailer and plans to “ensure that the Company continues to trade as normal, with a view to selling the business as a going concern”.

Ernst & Young said that all gift cards, cash deposits and savings club amounts will be honoured during the sale process.

Luke Charleton, joint receiver at Ernst & Young, said: “We are advised that the majority of stores are profitable and collectively will be attractive to potential purchasers. We will work closely with management to assess the viability of each of Company’s stores.

“The Joint Receivers will be briefing all staff and contacting suppliers to ensure that trading continues as normal. The brand has transitioned itself from being primarily a movie rental company to one of a broad-based provider of movies, games and the full spectrum of home entertainment products.

“We will advertise the business seeking expressions of interest from third parties with a view to securing the early and successful disposal of the Xtra-vision, thereby ensuring the continuation of the business.”

Xtra-vision is headquartered in Tallaght and hosts a database of over 400,000 customers.

Xtra-vision generated EBITDA of £1.5m in 2012 and said it is on track to generate a similar level of profit this year.