Virgin Megastores Stop Rockin' Music World

After nearly two decades of rocking the music world with a mix of brash stunts and splashy CD releases, the remaining six Virgin Megastores in the United States will shut their doors this summer in another blow to recorded music.

The hipster shops received their branding from billionaire founder Sir Richard Branson and remained profitable, but the real estate firms that own the U.S. chain determined they could command higher rent from new tenants.

A slowing economy took its toll. To buck declining music sales, the chain broadened its offerings in the last few years to apparel, books and electronics. The six remaining stores took in about $170 million in revenue a year, down from the $230 million from 23 stores at its peak in 2002.

The lack of expansion plans and a recent decision to close the Times Square location in New York, which had been on track to make $56 million last year until the financial collapse began in September, made supporting the rest of the chain untenable, Wright said.

The first American store opened its doors on Sunset Boulevard in Hollywood in December 1992, but it closed early last year when its lease expired

By Ryan Nakashima