US Virgin Megastores to close by June

The British Music Merchant will be joining the long list of deceased music retailers, and closing their 6 remaining US stores this June. Virgin was notorious for overpaying for store locations, which lead to as many as 12 unprofitable Megastores. Experts cite this failure to understand the US real Estate market as the music chain’s downfall but also recognize digital transition, big box retailers and chain store exclusive releases as contributing factors. At its most profitable, Virgin had 23 Megastores throughout the US and earned $280 Million annually. Virgin Entertainment Group North America CEO Simon Wright also blamed the recession for the chains imminent demise, saying “the holidays were what they were and the economy is what it is since then…The economy is so bad, it’s all about batten down the hatches.”