Tuesday, January 8, 2013

Virgin Megastore France To File For Insolvency


Wed., January 9, 2013
Books-to-music retailer Virgin Megastore France will formally declare itself insolvent on Wednesday, the latest casualty of an industry-wide slump in CD and DVD sales as consumers download more film and music online, Reuters reported. The filing, the first step towards a possible court-ordered company restructuring in France, coincides with the start of winter clearance sales in a morose economic climate. Shoppers are reining in spending in the euro zone's second-biggest economy where the total number of people out of work is at a 15-year high. Virgin Megastore France, which employs 1,000 people, met staff representatives on Monday and Tuesday. Laurent Parquet, a representative of majority-owner private equity firm Butler Capital Partners, also attended the meetings. The commerce court will decide whether the firm, which operates 26 Virgin-branded stores in France, including a flagship operation on the Champs-Elysees in Paris, can be restructured or should be closed down. The group, which has annual sales of nearly 300 million euros ($392 million), has been loss-making for the past four years.

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