Virgin sells off French megastores

Virgin's French Megastores have been sold to Lagardere Media for around £90m.

Under the deal all 16 French stores will keep the Virgin logo and Sir Richard Branson will remain on the board of the French Megastore business.

Lagardere has also gained exclusive rights to use the Virgin retail brand in France, Belgium, Luxembourg, Switzerland, Portugal and Spain.

Lagardere and Virgin Group say they will continue to work together across a range of products and services.

These include new Virgin Megastores in France.

Arnaud Lagardere, Lagardere's chairman, says the total cost of the deal is "under 1 billion francs" (£93.7m).

Mr Lagardere says the group's Extrapole music and bookshop chain will adopt the Virgin brand following the deal.

Virgin Entertainment Group says it will continue the international expansion of Virgin Megastores, with new stores planned in Asia and the US.

Simon Wright, the chief executive of Virgin Entertainment Group, which includes Virgin Megastores, says: "We are delighted to secure this agreement with Lagardere Media and I believe this deal will ensure that the Virgin brand continues to go from strength to strength in Europe and across the world.

"Since inception, Virgin Megastores have been a strong brand builder for the Virgin Group in both the UK and Europe. This deal enables us to develop the Virgin brand in previously untapped territories such as the Middle East."