EMCC European Monitoring Centre on Change

Virgin Megastore

Company/Organisation:
Virgin Megastore

Geographic Location

Country: France

Company

Sector: Retail
Wholesale and retail trade; repair of motor vehicles and motorcycles
47.6 - Retail sale of cultural and recreation goods in specialised stores
Number Employed: 1000
Group: Butler Capital Partner

Employment Effects

Announcement Date: 17-06-2013
Planned Job Reductions min: 1000
Type of Restructuring: Bankruptcy
Employment Effect Start: 24-06-2013
Foreseen End Date: 20-07-2013
Direct Dismissals: 960
Other Job Reduction Measures: 40

Additional Information

On 17 June 2013, the Commercial Court of Paris decided the liquidation of entertainment and retail chain Virgin Megastore, affecting a total of 1,000 jobs.

According to the sources, 960 jobs are at stake and another 40 people will lose their jobs (from subsidairies). A works council will be held on 24 June to reach the final decision of the social plan. Employees fight to obtain a 15 million euros budget instead of the 8 million currently proposed by the owner. As reported, 8 out the 26 stores are occupied by employees protesting and asking for a better departure plan.

The company that created the first “megastore” on the Champs-Elysées (Paris) in 1988 has seen its turnover decreased with the increase of sells on the Internet. Virgin operates 26 stores in France and is owned by the Butler Capital Partners investment funds.