XTRA vision was founded by former motorcycle courier Mr Richard Murphy in 1982 and grew rapidly over the following seven years. In 1989, Xtra vision was floated on the Irish stock market and became a classic "boom and bust" stock.

The market listing led to an aggressive expansion in Ireland, the US and the UK funded by a series of share issues totalling almost £22 million. But within a year of going public, Xtra vision had debts of £18.3 million and losses of £20.3 million.

Cambridge, the fast growing financial services group, then arrived as a 61 per cent shareholder in Xtra vision and founder shareholder Mr Murphy departed, and was replaced as chief executive by the head of Xtra vision's US operations, Mr Sal Perisano.

A further £3.4 million was raised a year later and revised banking facilities were put in place. The issue of new shares reduced Cambridge's stake in Xtra vision to 48.1 per cent. But in September, 1993, Cambridge itself went into receivership and by the end of 1993, Xtra-vision was in default of its repayments schedule to the banking syndicate, which was owed £11.8 million.

Xtra-vision shares, which at one stage had reached 108p, were then suspended at 151/2p and accountant, Mr Bernard Somers, was appointed as examiner by the High Court.

At this stage, NCB Corporate Finance director, Mr Peter O'Grady Walshe, brought in 3i and HSBC Private Equity and negotiations on a buyout with the banks, the shareholders and the examiner got under way.

The end result was that the examinership ended in July, 1994. The net effect was to reduce Xtra vision liabilities by £7.3 million, 3i and HSBC nut in £4 million in equity and an arrangement was made to restructure the bank borrowings over a five year period.

Shareholders some of whom had pushed the shares up to extraordinary levels and to a peak of 108p were offered one eighth of a penny for their shares. Preferential creditors such as the Revenue Commissioners got 70p in the pound while unsecured creditors got 20p in the pound.

At this stage, Mr O'Grady Walshe was appointed managing director of Xtra vision.

The company then sold the US subsidiary for $2 million and arranged a sale and leaseback of some of its stores which freed up £1.8 million to reduce the bank debt. The bank debt was refinanced in July, 1995, and was entirely cleared by January, 1996. The group currently consists of 225 stores and has 1,000 employees.