The Virgin Megastore retail chain will rebrand itself later in the year following Sir Richard Branson's exit from the company.

The new stores will be called Zavvi, after the Zavvi Entertainment Group that has bought the business.

The Virgin brand will continue in-store however through the Virgin Mobile and Virgin Media in-store concessions.

The company's website, which has only just gone through a massive re-launch, will be re-branded in January.

In the past year rivals Fopp and Music Zone have both called in the administrators, while HMV, the market leader, has issued a number of profit warnings.

Branson is rumoured to have moved away from retail due to heavy market pressures from online alternatives, supermarkets, and illegal music sharing.