Butler-backed Virgin Megastore files for insolvency

An administrator is now due to be appointed, while the company's 1,000 employees working across 26 stores in France face an uncertain future.

Turnaround specialist Butler Capital acquired an 80% stake in Virgin Megastore France in 2007 from Lagardère Services – the deal was believed to be worth around €100m. The retailer specialises in music, books and media products.

The Virgin chain, formerly part of Richard Branson's Virgin empire, has been faced with mounting difficulties in recent years. Although it posted a turnover of nearly €300m in 2011, the retailer is faced by the same constraints affecting its competitiors, including HMV in the UK and FNAC in France; it is also faced with a hefty debt burden. Several stores were closed and around 200 employees were made redundant in the past couple of years.

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• Topics
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• Butler Capital Partners