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All Virgin Megastores Set to Close As Last Big National Music Chain Folds

3/2/09, 6:16 pm EST

Photo: Sullivan/Getty

Last week’s news that Virgin Megastores in New York’s Union Square and San Francisco were closing was evidently the tip of a very sharp iceberg. Billboard.biz reports today that the multi-media chain’s only three remaining stores in Denver, Orlando and Los Angeles will also be shuttered by this summer.

In a move that almost predicated the closures of the Virgin chain, Virgin Entertainment Group North America was acquired by a pair of real estate companies in 2007, Vornado and Related Cos., mostly because those companies were interested in Virgin’s prime locations. The music stores were paying well below-market value per-square-foot for their locations, according to Billboard.biz. For instance, the Times Square location was paying a mere $54 per square foot when the actual location could command $500 if leased by another retailer.

It’s unclear how significantly the fall of Virgin will impact the music industry, though its affects will be felt by New York consumers now lacking a major all-encompassing music store — J&R Music World and Best Buy locations are the last vestige of the major music chains in the city (Los Angeles and San Francisco still have Amoeba Records, which is an excellent store) since Tower Records went under in 2006 and FYE closed up its Manhattan locations last year. But the Union Square was a mecca for both music fans and NYU students, as it was located near their 14th Street dorms. In a similar situation, the U.K.’s Zavvi music chain, which was created after buying out Virgin Megastore locations in 2007, also announced earlier this year that they too would be going out of business. The Virgin Megastores in all locations are expected to announce liquidation details shortly.

Related Stories:

Tower Records In Memoriam: 1960-2006
Decline of the Music Industry Hits Home: Rolling Stone Loses Its FYE


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Comments

heathen2002 | 3/2/2009, 6:59 pm EST

YES!!! Awesome!! The last of the giants! The great thing is that this will give the smaller mom and pop retailers a chance to turn some product. The music is out there..You just have to look for it. When Tower Records folded here in Nashville, everybody expected the worst. But now, the best music retailer in town is a small mom and pop shop that does a booming business, with individuals that are really knowledgeable on just about every genre of music..BTW- It’s name is Grimey’s- check it out if you’re in N-ville…

scott | 3/2/2009, 7:21 pm EST

dude…mom and pops are not going to make it either. I wish they could but no ones pays for music anymore. I still buy the occasional cd, record, or concert dvd but theres not alot of business for the record store anymore….the internet fucked alot things up and so did monopolies over music, such as walmart and bestbuy…they r still there and they are going to seek out these opportunities to make money thats my opinion but i would love to see the old local record stores again

heathen2002 | 3/2/2009, 8:33 pm EST

Scott-
Good point. I certainly agree with you on some points. I just feel the mom and pops will still succeed to some degree. Granted, they will never turn as much of a profit, but I think these stores will be kind of a “cottage industry”, catering to a particular niche or demographic. They won’t appeal to the mainstream, casual shopper, but the selection and variety of out-of-print, or imports will never be equalled by a big chain. True, some people can buy such products on line, and I don’t think the “mom and pops” could succeed in smaller markets. But there is definitely a market. The store I’m referring to has in fact seen phenomenal financial growth and increased product turnover even within the last 2 years. each year better than the last..While the industry is tanking, they’re making a killing! (albeit a smaller scale) I think it speaks volumes about how appealing to a particular aspect of the market can really pay off…

Denton | 3/2/2009, 8:39 pm EST

Good. Their prices were highway robbery.

Greendale | 3/2/2009, 8:41 pm EST

Wow, that sucks, now we can’t pay $17.99 for a cd anymore.

Anonymous | 3/2/2009, 9:14 pm EST

As long as there’s still an Amazon, I’m okay.

I’m not so nostalgic for the days of going to record stores anyway. Overrated experience.

DGG | 3/3/2009, 3:59 am EST

My my, whatever will all those poor NYU students do… If only they had an Internet connection… And knew how to share files…

tgee | 3/3/2009, 9:49 am EST

The local mom and pop here is doing what many others are starting to do.. offering vinyl. Music has become disposable so you can have all the free garbage you want, the music matters to some people at least.

BookSeekers | 3/3/2009, 10:22 am EST

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raghag | 3/3/2009, 1:54 pm EST

Sadly, there are also 1000 + employees that will be joining the ranks of the unemployed. ANd last time I checked, mom & pops weren’t really hiring

Anonymous | 3/3/2009, 4:48 pm EST

Mega music stores are overrated. I hope they all go under!

The day the music died | 3/4/2009, 12:14 am EST

As much as I hate big stores for killing off smaller ones, I am angry that the property owners are closing the stores down out of GREED… So that they can rent the locations to a store that will bring in MORE MONEY.

old fogey | 3/4/2009, 1:35 pm EST

as long as there are older folks who really appreciate music, the retai outlets will survive, just on a smaller scale–and as for the “new” music on vinyl, well i just go back into my 3500 albums, 150 reel to reel tapes, and other stuff and enjoy what i have–every thing old is new again. Long live vintage and long live ROCK!!

yomama | 3/5/2009, 8:33 am EST

Thousands will be unemployed and sometime soon someone will get fed up and do something stupid and dangerous cause the little guy can afford to eat while the corporations feed on the flesh of the living.

DoctorKnows | 3/10/2009, 3:17 am EST

Yea but Mom and pop stores can offer the large variety that a megastore can. Rasputin and Amoeba buy and sell used so the new selection not gonna be that great. Best Buy dosent archive so you really buy older movie there. No one else is gonna be willing to archive so many movies. Sure you can buy online but can you get it right there and then or will you have to wait? Where do you go for in store performances now? While Mom & Pop stores maybe coming back somewhat your gonna have a by far margin smaller selection. The greedy real-estate people are asses I mean isnt this what got us in this economy anyways money hungry grabbers. Do we need a new 4 ever21?

bobgeorge | 3/29/2009, 10:13 am EST

What’s old is new again. Independent mom and pop stores will eventually be the norm for music retail. In Orlando, we have three great independent stores that have been here 15+ years, Rock ‘n’ Roll Heaven, Park Ave CD and Retro Records. I’ll miss the Virgin Megastore at Downtown Disney because of its proximity to the House of Blues. It was nice and convenient to stop by Virgin before and/or after a show at H.O.B. Now, I’m looking forward to finding some new, 180 Gram vinyl releases at a decent discount since the Orlando store is being shuttered.

Anne | 5/15/2009, 12:47 am EST

The problem I’m seeing here is that so many people are angry at the big retailers and their pricing. Have you walked through an ACTUAL mom&pop store? There’s a reason they get pushed out of business. Because they usually charge MORE for their product and they tend to carry a meek selection ranging 3 to 4 genres. As far as digital. Well, that’s great if you like to live in solitude. I, for one, enjoy walking through shops like Virgin with my friends. It was the perfect way to pass the time away before your movie or concert. AND considering all the $10 deals they would run almost constantly you could usually walk away with a good buy without s&h costs **wich I HATE paying** and have it right there, right then. Were these stores perfect? Absolutely not! But they were fun to spend time in and I will miss them.

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