Paris, France, French Employees Holding Signs, in Virgin Store, Protesting Against Store Closures, Ave. Champ-Elysees, © /
Virgin Stores LTD, submitted a request today to declare themselves insolvent. Many Employees, Unions, and supporters, from several of the French Stores Protested at the main flagship store on the Champs-ELysees, Paris, France,. "Is Virgin Megastore going bust?" Posted on January 7, 2013 by Trista "As confirmed Friday on France Inter, Virgin Stores will submit a request today to declare themselves insolvent. As in the US with Chapter 11 status, there tends to be two possible outcomes of this: 1) restructuring or 2) full-out liquidation/bankruptcy. Given how things have been going for Butler Capital owned Virgin Megastores in recent years, outcome #2 looks like a real possibility. This would lead to the liquidation of 26 outlets throughout France and the elimination 1k jobs. They had to have seen it coming The demise of Virgin Stores is, sadly, not really much of a shock to anyone. As with other retailers whose business relied heavily on the CD and DVD sales such as Tower Records and Virgin in the States and HMV in the UK, they’ve simply been undone by the increasing domination of e-commerce giants, the migration to digital music and video, and the seemingly unstoppable phenomenon of illegal downloading/piracy. Since 2008, Virgin Megastores has been in a downward spiral, having amassed €22 million in debt and, as a result, are quite a bit behind in their rent, social charge payments, and payments to other suppliers. They’ve even been forced to draft a plan to close their hallmark store on the Champs Elysees, which sparked a strike involving dozen of employees just prior to the Christmas holiday.
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