Virgin Megastore, HMV and Atari Seek Relief Through Bankruptcy
Over the last few years, many well-known names in the entertainment industry have faced tough challenges in this economy. As technology continues to advance and more people begin to seek alternative mediums for obtaining their music, games, movies and the like, many companies are struggling to maintain profitability.
Since the beginning of this year, several recognizable brands have filed for Chapter 11 debt reorganization in efforts to beat the odds.
Behind Closed Doors
Virgin Megastore was on the first music and movie retail chains to close up shop on one of its most notable locations in Paris. Located on the infamous Champs de Elysees, the closing of this particular Virgin Megastore has the remaining 26 French locations up in arms. With close to 1000 jobs at stake, company officials are holding out hope for a successful financial resolution that will allow them to move forward in the future. Also this month, British music retail chain HMV filed for the U.K.’s equivalent of Chapter 11.
Last week, video game maker Atari entered bankruptcy court to ditch its international reach and move into profitability in the U.S. Bought by France’s Infogrames Entertainment in 2008, the company has struggled to keep out of the financial red. With intentions of capitalizing on the Smartphone and tablet application market, Atari is hopeful that the Chapter 11 process will allow them to move forward without prior financial baggage slowing down their operation efforts.