Veg Claims To Be Settling Dispute With U.k. Majors

Virgin Entertainment Group (VEG), parent of the Virgin Megastore and Our Price retail chains, claims that it is in the process of settling its payments dispute with the five major record companies. The private U.K.-based company confirmed earlier this year that it had withheld its Christmas sales payments, claiming that online music distributors were receiving better terms than bricks-and-mortar stores -- a charge denied by the majors.

VEG COO Simon Wright tells Billboard Bulletin, "We are in the process of settling with three of the majors, and I'm fairly confident we will settle with the rest in due course." He would not disclose details of the settlements, but a report yesterday in The Times of London -- apparently originating from the Virgin camp -- puts the total payments owed at £30 million ($47.9 million); Virgin has now reportedly paid off half of that.

Representatives of the majors did not return calls seeking comment by deadline.

Wright concedes that the withholding of payments has created difficulties, but adds that Virgin has achieved some concessions from its suppliers. VEG operates more than 90 Megastores in the U.K.