Virgin is pulling out of the family entertainment sector and will not trade in the two major schemes where it has signed leases. Richard Bransons company will not be opening in the Richardsons Fiveways scheme in Birmingham and Printworks in Manchester.
Although the decision has just been taken, it comes on the back of Virgins £215m deal last year to sell its entire cinema operation in the UK and Ireland to French operator UGC.
Virgins decision comes at the 11th hour for the Richardsons schemes, which are both due to open in the next few months.
Lee Richardson, director of Richardsons, said: “Virgin is committed to the leases. We and Virgin are trying to find other operators to sublet the space, although were not talking to other FEC operators.”
UGC is still anchoring Fiveways with a 12-screen cinema, although it is reviewing the existing portfolio. A UGC spokeswoman said: “UGC is evaluating the whole estate following the rebranding, which has been the main priority for the past six months.
“Were now evaluating how all the old Virgin cinemas operate.”
An insider said: “Its not surprising Virgin did this. FECs have had a good run but maybe its time to back off.”
EGi News 16/06/00
