Virgin France, which operates the Virgin music retail shops, is slated to declare itself insolvent next week. A company spokesperson said today the company would hold a meeting on Monday, Jan. 7 to work out a restructuring plan in an effort to avoid closure.
According to Reuters, the music retailer has been operating at a loss over the last four years accumulating an estimated debt of $28.8 million.
Virgin France is owned by the French investment company Butler Capital, which bought 80% of the company from Lagardère in 2007. Lagardere still owns 20% of the company which it purchased from Richard Branson's Virgin Group in 2001.
The company operates 26 Virgin retails stores in France including its flagship operation on Paris' Champs-Elysées. The music retailer recently terminated its lease at that location.
In recent years, the UK's largest music retailer HMV has faced similar financial pressures reorganizing itself and recently having to fend off buyers.