Bredin Prat joiner takes lead role on Virgin Megastore insolvency

Bredin Prat partner Olivier Puech has picked up a mandate from collapsed French entertainment company Virgin Megastore just days after joining the firm from Gide Loyrette Nouel.

Virgin Megastore, which is majority-owned by private equity group Butler Capital Partners, filed for insolvency last week and was put into court-appointed administration on Monday (14 January).

Like its UK counterpart HMV, the retailer has struggled in the face of competition from online entertainment outlets and has debt estimated at €22m.

Puech is advising Virgin Megastore on its administration, having only started work at Bredin Prat on 11 January (10 January 2013).

The Paris Commercial Court (Greffe du Tribunal du Commerce de Paris) appointed administrator Gérard Philippot to oversee the administration process. The company has four months to try to put its affairs in order.

Virgin Megastore’s financial difficulties have led to protests by employees against threatened job cuts.