Video pirates will 'make millions' this weekend from the collapse of KPS, an industry figure predicted.
Describing the closure of the 230,000-member rental video group as 'a major setback', Movieland chain owner Colin Grant blamed strict import laws and a thriving black market.
'The pirates are going to love this - they're going to be making millions during the next few days,' he said.
'It's not just videos. This hurts a lot of retailers, anyone who sells or rents music, videos and computer software.' Parallel import laws introduced last year prevent video retailers from independently importing titles from the cheapest source.
Instead, they must apply to the Motion Picture Industry Association, which then imports the title through a local distributor in a process which takes some weeks.
'The Government has a lot to answer for - 25 per cent of business has been lost since that law came in and 30 per cent of video stores have closed in the past year,' said Mr Grant.