The UK's Entertainment Retailers Association yesterday welcomed the management buyout at the Virgin Megastore which, as previously reported, will see the high street music retailer rebrand as Zavvi and bring to an end the Virgin Group, and Richard Branson's, 37 year association with the music business.
The trade body for entertainment retailers said the deal was a "welcome vote of confidence in the music retail sector", with ERA chief Paul Quirk telling reporters: "This is no surprise. Branson has been moving away from his roots in music for years. But it is extremely good news that the management team will now be able to move the business forward. The fact that the management has been able to secure funding for this deal shows the robust prospects for entertainment retail. The computer games and DVD markets are buoyant and even in music, despite misguided predictions that somehow record stores are finished, 90% of sales are still on physical formats".
Zavvi will be the second biggest 'specialist entertainment chain' in the UK. Quirk concluded: "Specialists are the heart and soul of the music retail business. We are delighted to welcome Zavvi to the ranks of the UK's entertainment retailers".