City team plays vital role in Virgin Megastores deal

Sep 18 2007 by Vicky Anderson, Liverpool Daily Post

THE high-profile buyout of Richard Branson’s Virgin Megastores has been completed, thanks to the key role of a team from the Liverpool office of DLA Piper.

In “one of the retail deals of the year,” according to the firm, a group led by Peter Brook advised the management team which completed the buyout late on Friday night.

The deal, for an undisclosed amount, has created the UK and Ireland’s largest independent entertainment retailer.

Some 125 stores will transfer and be rebranded as “zavvi” by November, including the Liverpool Virgin Megastore at Clayton Square.

The rebranding of the website and Irish stores will follow in January, 2008.

As Sir Richard Branson’s original business was founded on music retailing, the buyout also marks the end of an era.

Peter Brook, DLA Piper’s partner in the technology, media and commercial practice, said: “The Liverpool office has acted for Virgin Group over many years and this landmark deal demonstrates our team’s ability to manage, co-ordinate and realise complex transactions in a time-frame that reflects the clients’ needs. We wish the zavvi team every success for this exciting venture.”

Zavvi’s Entertainment Group’s finance director Steve Peckham said: “We have successfully worked with Peter and DLA Piper for a number of years. We have really appreciated the dedication and support from the team at DLA Piper in helping us to complete this transaction in a particularly tight timescale.”

Sir Richard Branson, chairman and founder of the Virgin Group, said: “We now choose to franchise our global entertainment retail operations, rather than own them, and this was the last significant Virgin wholly-owned retail business in the world.

“The Virgin brand will continue to be represented in-store through the Virgin Mobile and Virgin Media in-store concessions. Also, Virgin Media has long-term plans for Virgin Media outlets in major retail locations. I would like to take this opportunity to wish the retail team all the best with their new venture.”

The DLA Piper team was led by Peter Brook and included Sarah Bell (technology, media and commercial), Andrew Noon (finance and projects) and David Thompson (tax), Stephen Jones (Tax), Jonathan Radcliffe (corporate), Melanie Cotgrave (corporate), Victoria Berg (finance and projects), Nick Jew (employment, pensions and benefits), Paul Shutler (technology, media and commercial), Kathy Toon (real estate), and Jim McDonnell (technology, media and commercial).

DLA Piper acted on the other side from its longstanding client, the Virgin Group.

Mr Brook’s team has represented Virgin Megastores for a number of years and handled the launch of its music download service but on this occasion represented the management team which has bought the retail group. London-based Slaughter and May acted for the Virgin Group.

vickyanderson