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Virgin Stores in France filing for bankruptcy

Tuesday - 1/8/2013, 1:00pm  ET

PARIS (AP) - The Virgin Stores chain in France, which includes the flagship Megastore on Paris' famed Champs-Elysees, plans to file for bankruptcy.

Virgin Stores, which sells music and books, said Tuesday it will make the filing Wednesday. The Tribunal of Commerce will appoint an administrator with 4-6 months to find a solution.

The announcement came after two days of meetings between representatives of the 26-store chain's 1,000 employees and store officials. A representative of the main shareholder, Butler Capital Partners, was present.

Virgin Store spokeswoman Isabelle Clap said the chain had been hurt by a "series of problems that accumulated." As sales of CDs declined, the chain failed to expand in digital markets quickly enough.

Clap confirmed Virgin Megastore hasn't paid rent in 3 months but refused to provide overall debt figures.


(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)