Paris court orders liquidation of retailer Virgin Megastore France

 
City A.M. Reporter
A PARIS court yesterday ordered the liquidation of books-to-music retailer Virgin Megastore France, sending hundreds more people to join France’s record jobless queues.

Virgin Megastore France, which employs 960 people in France, filed for insolvency in January, blaming high property rental costs and an industry-wide slump in CD and DVD sales as consumers download more film and music online.

The court last week rejected two takeover offers by clothing group Vivarte and specialist retailer Cultura, deeming neither sufficient to safeguard Virgin’s future.

“It's not a surprise, but it’s a very sad day for Virgin and its employees,” Virgin chief executive Christine Mondollot said. “We had no other choice but to put the company under liquidation.”

Union leaders will meet on 24 June to discuss the conditions in which staff will be laid off. They have called on staff to occupy stores to heap pressure on management.