I work a few blocks away from the Times Square Virgin MegaStore. A few months ago they decided they would not be renewing their lease for that space. They had originally moved in 1996, before Times Sq had been fully "Disneyfied," and thus got a very good rental price per sq ft for the huge space. With that lease now up, the landlords wanted to really cash in and asked for a far higher rent than Virgin was willing to pay.
On a side note, it still has not been revealed if any company has spoken for this soon-to-be-open, huge retail space in the heart of Times Square. There has been some speculation though (including on this board) about the possiblity of Disney moving in there. They are closing their 5th Ave World of Disney store, chosing not to resign their lease at that location. But when that was announced, Disney said they'd be looking for another location in New York City. Not only would this Times Square location be great for them given the number of Broadway musicals they have going on nearby, but the basement level of the space already has (currently unused) movie theaters that could be used for special screenings and events. Mind you, this is total SPECULATION, but we'll keep our eyes out for any annoucements.