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HomeBreadcrumbCalendarsBreadcrumbNational AffairsBreadcrumbFrance Affairs

Virgin Megastore France to declare insolvency

Monday 7 January 2013
France

Published: 4 Jan 2013 | By Georgeta Gheorghe and 1 other | Last updated: 4 Jan 2013
   
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Virgin Megastore France is expected to declare itself insolvent at a meeting of staff representatives. At the meeting the company's stakeholders are to unveil a plan to file for payments suspension.


According to industry observers, the dramatic fall in sales of CDs and DVDs, which is triggered by consumers' preference for online downloads, is driving many retailers out of business.


Virgin Megastore France employs 1,000 people and has accumulated a debt of €22 million (£18 million) in the past four years since its troubles began. 


Virgin France is not operated by British billionaire founder Richard Branson as it was bought in 2001 by French media-to-aerospace group Lagardere. The chain, which consists of 26 Virgin-branded stores in France is currently owned by private equity firm Butler Capital Partners.



Source
Reuters.com uk.reuters.com, 04/01/2013
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Created by Georgeta GheorgheCreated by Georgeta Gheorghe
on Fri 4 Jan 2013
Modified by Yafit LazarLast modified by Yafit Lazar
on Fri 4 Jan 2013
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Location: France
Date: Monday 7 January 2013
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