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.