Virgin brand to remain

Virgin Megastore’s Middle East operation on Tuesday said it will not be affected by Richard Branson’s decision to sell the music retailer’s UK and Irish stores.

The British tycoon on Monday announced that after 37 year he was parting ways with the business that his Virgin empire is founded on.

A management buyout team has agreed to acquire the UK and Irish stores for an undisclosed sum, which will be rebranded ‘zavvi’.

The music retail chain’s regional operation, which is a franchised operation owned by French media company the Lagardere Group, said all Virgin Megastore branding in the Middle East will remain as it is.

In 2001, the Virgin Megastore worldwide was split between the Virgin Group and the Lagardere Group.

The Virgin Group kept the UK, Ireland, USA and Japan outlets while Lagardere obtained the shops in France and travel retail locations globally including Australia, China, Greece, Middle East and North Africa.

Lagardere said Virgin Megastore is currently the largest entertainment retailer in the Middle East region, with more than 60% share of the market.

It employs more than 700 people regionally, receiving an average of 15,000 customers daily and operates a total of nine retail stores in the UAE, Kuwait, Qatar and Egypt, and is set to open two new outlets in Jordan and Sharm El Sheikh in Egypt later this year, the group said.