VIRGIN STORE ABANDONING CENTER SITE CITY SEARCHING FOR HIGH-PROFILE TENANT.

Byline: Alex Dobuzinskis Staff Writer

BURBANK - Closed since its roof collapsed in the heavy winter rainstorms, the Virgin Megastore in the Burbank Town Center complex will not reopen, and the mall is looking for a new tenant for the high-profile site at Burbank and San Fernando boulevards.

The site is a prime location because it is both near the Golden State Freeway and across from a busy Ikea store. It is also important for city officials because it is a gateway to a downtown area the city wants to revitalize.

``We're having very positive dialogue with numerous tenants that have shown a high level of interest, and we're excited to add another quality tenant to the center,'' said Jim O'Neil, executive vice president of Crown Realty & Development, the mall's owner.

``Not that Virgin wasn't a good tenant. But it's a great piece of real estate and tenants are lining up for it.''

Virgin officials confirmed they are closing the store.

``We are sorry to announce that we won't be reopening the Virgin Megastore in Burbank. We would like to thank our former staff and customers for their support over the years,'' said a spokesman for Virgin Entertainment Group. ``We are currently looking for a new location in the area to open another store in addition to opening our new store this fall at Hollywood and Highland.''

The Virgin site covers about 30,000 square feet. The store's lease ends in August, and from now until then, the record company will be clearing out the site, O'Neil said.

The mall, which repaired the roof soon after it collapsed in February, has had meetings with about a half-dozen potential tenants, all of which deal in apparel or technology, O'Neil said. Once the site is cleared, a new tenant could open its doors within six months.

The introduction of the Apple iPod has changed the retail market for compact discs, and record makers and retailers have struggled with how to react now that consumers can get songs off the Web.

But even with Virgin's pending closure of its Burbank store, other music stores are continuing to make money despite competition from music downloads.

``I always think that there's going to be a large group of people that like shopping and browsing at a brick-and-mortar store and having that (CD) collection,'' said Aaron Scott, a manager at Tower Records in Glendale.

And Burbank customers still have several other stores downtown that sell music.

As Virgin prepares to move out, the mall will get an equally large tenant in September when Bed Bath & Beyond opens on the lower level. The lower level has been tough for retailers, but the mall plans to turn that around with the addition of the Home Store and the installation of new escalators, O'Neil said.

Alex Dobuzinskis, [phone]

alex.dobuzinskis(at)dailynews.com

CAPTION(S):

map

Map:

Virgin Megastore location