Virgin Megastore is one of the world’s largest books and music retail chain. However, the digital age has pressured the sales of music CDs in recent years. In efforts to fight financial turmoil, one of the company’s most noteworthy locations has filed for bankruptcy.
The Virgin Megastore located on Paris’ famous Champs-Elysees is the company’s flagship location. An icon to entertainment products in central Paris, the store announced last week that it will be closing. High overhead, increasing rent expenses and mounting profit losses couldn’t save the store’s 1,000 employees.
Once owned by the conglomerate group Virgin, run by entrepreneur Richard Branson, the store is now controlled by investment firm Butler Capital Partners. After two long days of meetings between company officials and employee representatives, the business bankruptcy filing was initiated with the French court. Virgin is hoping to appoint an administrator that can find a solution to hopefully save the location and reopen at a later time.