The business, which owns the Screenselect.co.uk brand and operates Tesco's and MSN's DVD rental offers, was forced to suspend its service over the weekend after the fire broke out last Thursday night.
Video Island hoped that a full service would be restored by today. As Retail Week went to press, the company was still assessing the damage and how the fire started. Nobody was injured, although DVDs have been damaged.
Chief executive officer Simon Calver said: 'Our business is fortunate that, at any one time, nearly 70 per cent of our discs are out with customers, so a large percentage of our library remains intact.'
Calver - who became chief executive officer at Video Island two months ago when founder Saul Klein stepped down - added that customers will be compensated for the loss of service. Video Island's head office, where its customer data is held, is in a different location to the warehouse so was not affected by the fire.
The company is planning to move its product into a temporary warehouse near to the damaged site. A spokeswoman said a move back to the original site will depend on the extent of damage.
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