UPDATE: It has been announced that the Virgin Megastore located in Downtown Disney will officially close its doors on May 31, 2009.
Virgin Megastore in Downtown Disney's West Side is home to the largest DVD collection in the state of Florida. Photo by Heather Leigh Landon
In an article in TheWrap, Virgin Megastores announced that they would be closing the remaining five stores by the end of summer. Some stores, like the one in San Francisco, will be closing as early as April. There is no date set as to when the Virgin Megastore, which is located in Downtown Disney’s West Side will be closing its doors.
The music retailer has been having difficulty keeping up with Internet sales and the easy accessibility of downloading music rather than consumers buying the entire CD. The Times Square location, which is the largest profit maker for the company will be closing its doors in April.
Virgin Entertainment CEO Simon Wright told TheWrap that the stores have been making a profit, but since two real estate companies bought the company, the focus has not been on the retail end of the business. Some reports state that the companies – the Related Cos. and Vornado Realty Trust - who bought Virgin Megastores were more interested in the real estate, rather than the actual retail aspect of the business.
"It's sad news, but it has nothing to do with the stores,” said Wright. “In this economy, we can't justify the other stores to replace the Times Square store." (TheWrap, March 2, 2009)
Other Virgin Megastore locations closing will be New York’s Union Square, Denver and Hollywood.
It is still unknown what will be replacing the store in Downtown Disney, but announcements have already been made of what the location in Times Square will become. It is expected to be turned into a Forever 21.
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