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Virgin Megastore to Close

Iconic record store to become Forever 21

By Evann Gastaldo,  Newser Staff

Posted Jan 14, 2009 9:37 AM CST

(Newser) – New York City’s iconic Virgin Megastore will close in April, Billboard reports. The Times Square fixture is the US’s highest volume music store, but the real estate company that acquired Virgin in 2007 is booting it for a higher-rent tenant. An exec told Reuters last year that Virgin pays $54 per square foot, compared with the market average $700.

Sources say the Megastore is still profitable and does an estimated $55 million in annual volume, but its 180,000 square-foot retail space will rake in more by housing a Forever 21—the next planned tenant. The closure leaves Virgin with only five stores, and bumps the NYC Union Square store to the top spot—but its future, too, is in question.

People shop in the Virgin Megastore in Times Square June 24, 2008 in New York City.
People shop in the Virgin Megastore in Times Square June 24, 2008 in New York City.   (Getty Images)
Pedestrians pass the Virgin Megastore in Times Square June 24, 2008 in New York City.
Pedestrians pass the Virgin Megastore in Times Square June 24, 2008 in New York City.   (Getty Images)
David Archulata attends his album release and signs copies of his self-titled album at Virgin Megastore on November 11, 2008 in New York City.
David Archulata attends his album release and signs copies of his self-titled album at Virgin Megastore on November 11, 2008 in New York City.   (Getty Images)
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