Virgin Cosmetics retail arm set to be axed

The Times of London newspaper says it has secured a copy of the administration papers, which outline that the last of the company’s ten stores in the UK will close down after January 10.

Virgin Cosmetics was launched by Richard Branson 12 years ago in a typically brash publicity campaign. At the time Branson said he wanted to expand the retail chain throughout the UK and then take it to international markets.

Today the high street retail side of the cosmetics business is a small aspect of the total operations, and the brand will continue to be sold both online and through direct selling channels.

Online and direct sales business will remain​

The Virgin Vie At Home business was bought from Virgin out in a management buy-out in 2008, and continues to sell cosmetics, jewellery and homeware, via its website and door-to-door sales staff.

The company is now run by Ros Simmons and Ratan Daryani, who were the original executives to set up the business when it was first launched. They aim to expand the business and eventually to make it international.

Simmons and Daryani have concentrated on cutting costs, in order to return the business to profitability as well as building up the company’s team of direct sales staff, which is currently estimated at 9,000.

In 2008 the business is estimated to have made a loss of £5.7m. (€6.2bn).

Re-focusing the Virgin empire​

The Virgin empire has suffered the price of over expansion, and the Cosmetics business has become the latest in a string of Virgin businesses to close down, most notably with the loss of the Virgin Megastores in the UK and US markets earlier this year.

Virgin has been selling off its non core businesses in order to focus on its core travel, telecommunications, media, financial services, health and wellness businesses.

However, despite the demise of some of its brands, the Virgin empire still represents a sizeable force, with an estimated annual turnover in excess of £5bn, and a list of brands that include Virgin Mobile, Virgin Atlantic, Virgin Cola and Virgin Radio.