Xtra-vision was acquired by Birchhall Investments from rental giant Blockbuster in 2009, at which time the company was reported to be debt-free and profitable.  Two key factors have contributed to its current difficulties: the general reduction in credit availability in Ireland - due to the economic contraction - and high retail rents, and both will continue to contribute to the rentailer's precarious situation. The other determining factor is the general health of the historically strong Irish rental market, which experienced a year-on-year decline of 13.8% in DVD rental transactions in 2010.

Despite the fact that rental still generated 29 per cent share of Irish home video spending that year, this market contraction is likely to make attracting financing from outside the industry more difficult. Furthermore with the demise of audio-visual retail specialist Chartbusters in October 2010 and Golden Discs' recent retail store closures, there are no healthy competitors in Ireland capable of absorbing Xtra-vision's assets or retail locations should the rentailer be forced into bankruptcy. Such a move would have detrimental impact on the overall home video market in Ireland, as unless a buyer could be found, Xtra-vision's significant contribution would effectively disappear along with the company's store base.