Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
On 17 June 2013, the Commercial Court of Paris decided the liquidation of entertainment and retail chain Virgin Megastore, affecting a total of 1,000 jobs.
According to the sources, 960 jobs are at stake and another 40 people will lose their jobs (from subsidairies). A works council will be held on 24 June to reach the final decision of the social plan. Employees fight to obtain a 15 million euros budget instead of the 8 million currently proposed by the owner. As reported, 8 out the 26 stores are occupied by employees protesting and asking for a better departure plan.
The company that created the first “megastore” on the Champs-Elysées (Paris) in 1988 has seen its turnover decreased with the increase of sells on the Internet. Virgin operates 26 stores in France and is owned by the Butler Capital Partners investment funds.
Eurofound (2013), Virgin Megastore, Bankruptcy in France, factsheet number 75527, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/75527.