Virgin will file for bankruptcy mercredi

PARIS (Reuters) - The management group distribution of cultural products and multimedia Virgin Megastore, a victim of the collapse of the market for CDs and DVDs, has announced it will file Wednesday in the court record of commerce.

A works great, which was opened on Monday, resumed Tuesday in the presence of the Virgin direction, a representative of the largest shareholder Butler Capital Partners, Laurent Parquet, as well as representatives of salariés.

"The company is in a state of insolvency, management has indicated that it can not let this situation continue," said Virgin Stores in a statement issued after the réunion.

The opening of a bankruptcy procedure "allow management of Virgin Stores seek different solutions to society" .

Unions have decided not to comment on the draft declaration of insolvency due to lack of support from the Butler part social.

"Our demand was that big (Butler Capital Partners) financially supports the social potential of all that can happen after the cessation of payments and we encountered an estoppel, Butler does not pay a dime for employees, "said Guy Olharan, secretary of the company and elected CGT.

According to him, the representative of Butler felt that this was not the majority shareholder of "pay social destruction" .

"This is the administrator who hands the fate of Virgin and its employees," he said, accusing the investment funds to favor a sale to découpe.

INÉLUCTABLE

The insolvency is the first step that must perform a company that is no longer able to pay its creditors. It can at best lead to a reorganization or worse on a liquidation, that is to say, the demise of the company .

Asked if the insolvent Virgin was inevitable, Laurent Parquet answered "yes" .

"As you know, Virgin is affected for a long time through a very difficult period," he told reporters at the exit of the réunion.

"We have a lot invested in this company, we tried to straighten the accounts of the company. Nowadays, our concern is to find the best possible solution," he expliqué.

The Inter

calls for mobilization on Wednesday before the Virgin Megastore France, including a demonstration in Paris in front of the Champs-Elysées.

"We hope that the government will actively engage with us," said Guy Olharan after a meeting with the Minister of Culture Aurélie Filippetti who has assured its soutien.

"I'm always in favor of the arrival of a buyer, I really hope you will help us find someone who will revive the network, which will take over the stores that will give new energy to these stores by taking DNA Virgin, working on the new store model that has been drafted by the current management and which flatly Butler kicked into touch. "

RECLASSEMENT

The President of Virgin Mondollot Christine, who left the meeting without a word had been received by Aurélie Filippetti Tuesday before the resumption of the works council. The meeting was very positive, indicated the direction.

Unions want employees who may be laid off to guarantees similar to those provided to their colleagues laid off recently in Toulouse and Metz, namely 11 months of outplacement leaves, the doubling of statutory compensation and a large budget for the formation.

Virgin Megastore has 26 stores in France whose turnover amounted to 286 million euros in 2011.

The company, which has already reduced its workforce by 200 employees in two years, losing in four years, according to a spokesman for the group explains this by the high cost of rent payable by the group in France view of the large size of its magasins.

Virgin Megastore suffers further loss of 70% of the CDs recorded over 10 years, while in four years DVD sales fell 15% and that for the first time in 2012, these books have were negative (-3%) .

debt of the company, including Fnac is the great competitor, is estimated at 22 million .

unions denounce their carelessness side management, including a statement that the company no longer pays its donors for several mois.

"I've never seen a company that could be managed and how the courts can not sanction that," said Sylvain Alias, Steward SUD.

Virgin Group billionaire Richard Branson was sold in 2001 stores in the chain of media group Lagardère, who still owns nearly 20% .

Marine Pennetier