Virgin megastores closed

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Another one bites the dust. The chain -- which Related Cos. It has also been downsizing, closing stores in Chicago and Salt Lake City this summer.

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Virgin Megastores was a retail chain that operated in the United Kingdom from to The company was established by Richard Bransonoriginally as a small record shop, and became a national chain. Inthe company was sold to management, and was rebranded as Zavvi.

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The Virgin Megastore in San Francisco will shut its doors in late April, adding a large vacancy at Stockton and Market streets to a growing number of empty storefronts around Union Square, the retail heart of the city. The music and video retailer, which opened its estimated 45,square-foot store 14 years ago, will start liquidation sales sometime next month, company officials confirmed Thursday. Union Square is still considered one of the country's most vibrant shopping districts and a destination for international tourists.

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The ground floor of the Times Square Virgin Megastore has an air of chaotic neglect. Generic "Everything Must Go! Almost everything is 40 percent off, but that's not convincing enough. I walk over the image of Nirvana's "Nevermind" cover projected onto the floor -- a reminder of a time when people actually got excited about buying records -- and try not to step on the floating baby.

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International music retailer Virgin Megastore has announced plans to suspend its operations in Kuwait just weeks after supplier Music Master pulled out of the country due to censorship of albums and artwork. Virgin declined to comment on whether the move was related to censorship issues, but sources say the firm has been mulling the scale of its retail operations in the Gulf state for some time. According to reports, almost 60 percent of products sold at Virgin Megastore are banned in Kuwait, with the Ministry of Information forbidding CDs by artists such as Lady Gaga, Britney Spears and Eminem due to their controversial lyrics.

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The entrepreneur's Virgin Group was keeping tight-lipped on how much it got for the UK and Ireland business that has been part of the British retail scene for three decades. The buyers said the deal created the UK and Ireland's largest independent entertainment retailer. Sir Richard's exit from the music retail business comes as CD and DVD retailers grapple with cut-price competition from websites and supermarkets and rampant piracy.

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Virgin Megastores is an international entertainment retailing chain, founded in early by Sir Richard Branson as a record shop on London 's Oxford Street. Bycurrent operations are exclusively in the Middle East and in North Africa, consisting of approximately 40 stores. Richard Branson and Nik Powell had initially run a small record shop called Virgin Records and Tapes on Notting Hill GateLondonspecialising particularly in " krautrock " imports, and offering bean bags and free vegetarian food for the benefit of customers listening to the music on offer.

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Company officials said they are drawing up an "emergency plan" to save the firm and some of its 25 stores, which employ about 1, people. Virgin France, which has not been part of Richard Branson's Virgin empire for more than a decade, has been hit by a collapse in the market for CDs and DVDs as customers shift to digital music and films. The same seismic shift in the market has left HMV in the UK also teetering on the edge of bankruptcy. The UK chain has admitted dire sales mean it is likely to breach its banking covenants later this month.

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The Virgin Megastores chain in France is set to declare insolvency next week following four years of losses due to growing competition from online music retailers and download sites. A Virgin spokeswoman said the company will unveil a plan to file for payments suspension at a meeting with staff representatives on Monday. The spokeswoman said high rental costs in high-profile locations in city centres and falling CD and DVD sales amid competition from rising film and music downloads, as well as a recent drop in book sales, were mostly to blame for the group's financial problems.

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The sounds of the Velvet Underground echoed in the Virgin Megastore in Union Square on Sunday afternoon, as bargain-hunting passers-by and hard-core music shoppers poked through what few items remained at the last large-scale record store in New York City. It was the final day of business for the Virgin Megastore chain in North America, which at its peak had 23 locations but by Sunday was down to two: the 57,square-foot, two-level New York outlet, and a smaller Hollywood shop that was also set to close. With the music industry stuck in a decade-long crisis, the sight of a record store closing is hardly surprising.

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