MUMBAI: The retail music sector has seen several lows due to the pressure build up by the digital stream. The recent blow comes with Virgin Megastore, one of the largest music chain located in Times Square, New Yortk, readying for a closure.
According to reports, 200 employees of the music store were also laid off. However, authorities at the Mega Store said that the Times Square store, which has about 60,000 square feet of selling space, is not simply a victim of technological progress.
The Virgin Megastore located in Times Square will now make room for Forever 21, a popular chain that sells moderately priced
clothing. A question mark still hangs if the music store will ever be started at some other place according to Simon Wright,
the chief executive of Virgin Entertainment Group. On the overall retail music scene Wright said that stores relying
completely on recorded music will have a difficult future, reports say.
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The Virgin chain, once part of Sir Richard Branson’s business empire, has been owned by the Related Companies and Vornado
Realty Trust since 2007. When acquired, their property comprised of 11 stores, but over the years was down to just five.
Virgin closed the other stores last year.
But the chain’s owners, two big New York-based real estate development companies, saw greater potential in leasing the prime
space to Forever 21. The Times Square space, on the east side of Broadway near 46th Street, will be closed for at least a
year before it reopens as Forever 21’s largest location. Senior vice president Mr. Meyer Lawrence of Forever 21 said that
recession had not affected his company’s enthusiasm from scaling up their plans in an expensive area like Times Square. He
declined to specify the rent Forever 21 will pay.
