electronics: February 2009 Archives

Virgin Megastore, the large music and media center that anchors large metropolitan areas, is pulling back. Virgin announced the closing of its Union Square stores in both New York and San Francisco this week, not long after deciding to leave Times Square in New York City.

Virgin Entertainment was bought by two real estate companies in 2007, so the moves are not just retail-driven. The rent for incoming Forever 21 in Times Square will be much higher than Virgin has paid since its 1990s opening. Indeed, this was part of the rationale behind the purchase--good for Related and Vornado, the current owners, if not for the Virgin Megastore brand.

The fate of Virgin's three remaining megastores has not been announced.

Ritz Camera, the nation's largest camera and imaging chain, filed Chapter 11 bankruptcy due to the recession and digital photography trends. Ritz, which owns Wolf Camera and other sub-brands, had a difficult holiday season and increased pressure from creditors. The company hopes to keep operating during its restructuring.

Appliance Direct, a small chain in central Florida, is assuming control of Rex Stores. Rex, also an appliance seller with a presence in Florida, had been struggling and closing stores in recent months. Appliance Direct has taken over roughly half Rex's locations and is negotiating to acquire other stores and much of its inventory. When complete, the buyout will significantly increase Appliance Direct's regional footprint.

Video game maker Midway filed for bankruptcy to avoid a credit default. Midway is hoping the filing allows continuing operations. In December Midway's principal owner sold 87 percent of the company for $100,000 to help with debt restructuring.