Branson Sells Up
Richard Branson has sold Virgin Megastores to a management buy-out team for an undisclosed amount according to bbc.co.uk.
In a year that has seen the likes of Music Zone and Fopp collapse under the pressure of fierce high street competition, this move will create the largest independent entertainment retailer in the UK and Ireland. The chain will be renamed Zavvi. It is believed that jobs will not be affected by the deal.
The chain made a pretax loss of £82.2 million in the year to March 2006. The company would not disclose the level of losses in the year to March 2007, but industry observers believe that the cash losses are likely to have been as much as £50 million.