DLA Piper and Slaughter and May have won the key advisory roles on the high-profile management buy-out (MBO) of entertainment retail giant Virgin Megastores UK and its sister chain in Ireland.

DLA Piper advised the Virgin Megastores management team, which was led by managing director Steve Peckham, on a deal that will create the largest independent entertainment retailer in the UK and Ireland.

Technology media and commercial (TMC) partner Peter Brook led a Liverpool-based team for DLA Piper, with support from fellow TMC partner Sarah Bell, finance and projects partner Andrew Noon and corporate lawyers Jonathan Radcliffe and Melanie Cotgrave.

Slaughters advised Virgin Group, with corporate and commercial partner George Seligman taking the lead role for the elite City firm.

Although DLA Piper is a regular adviser to the Virgin Group, the transatlantic law firm's Liverpool office has a longstanding relationship with Virgin Megastores.

The sale completed last Friday (14 September) and sees owner Sir Richard Branson offload the business that first launched his global Virgin empire in 1970. Approximately 125 UK stores will be rebranded as Zavvi by November, with the Irish outlets trading under the same banner from January 2008.

Last year, the company reported pre-tax losses of £82.2m. The last 12 months have seen market rivals Fopp and Music Zone both call in the administrators, with HMV also issuing a series of warnings over tumbling profits.