A Paris court ordered the liquidation of books-to-music retailer Virgin Megastore France on Monday, sending hundreds more people to join France's record jobless queues, reports Reuters.
Virgin Megastore France, which employs 960 people in France, filed for insolvency in January, blaming high property rental costs and an industry-wide slump in CD and DVD sales as consumers download more film and music online.
The court last week rejected two takeover offers by clothing group Vivarte and specialist retailer Cultura, deeming neither sufficient to safeguard Virgin's future.
"It's not a surprise, but it's a very sad day for Virgin and its employees," Virgin CEO Christine Mondollot told Reuters. "We had no other choice but to put the company under liquidation."
Consumer spending has been sapped by recession in France, the euro zone's second-biggest economy, and unemployment is at a 14-year high.
Union leaders will meet on June 24 to discuss the conditions in which staff will be laid off and found new jobs. They have called on staff to occupy stores to heap pressure on management.
Read more of this report from Reuters.