Ihug has sold its share of the company that owns the Video Ezy chain of stores back to its original owners after only buying into the company in April last year.
Ihug bought a 51% stake in the company in April 2000. It had two directors on the board along with two from Video Ezy itself.
"We sold it back to the existing shareholders, rather than sell them on to a third party," says director Nick Wood who says the purchase was originally made as part of the merger with Force Corporation - which fell through in May after negotiations broke down.
"Obviously with that not happening, the relevance of being involved with Video Ezy became less and we didn't need to maintain an ownership in the operation to maintain a relationship with them."
Part of the plan for Video Ezy was to build Ihug's E-mmediate delivery service around the chain's 114 outlets. The service, which offers home delivery from a number of different stores including restaurants, pharmacies, wine shops as well as video stores, currently services 16 suburbs in central Auckland, with more to be added in the coming months.
The pilot for E-mmediate was set up by co-director Tim Wood in conjunction with video chain, The Source, and its director Dave Fermargh.
"That's rocking on. It's about to go into Newmarket and Mission Bay," says Nick Wood.
"We may [use Video Ezy] or we may not, it will just depend on the area. Ideally it's whoever wants to work with E-mmediate."