Virgin Megastore confirmed Friday that it will not renew its lease at The Gateway shopping center in downtown Salt Lake City, ceding the space to new tenant Urban Outfitters, which is making its debut in Utah.

"The Salt Lake City Virgin Megastore is opting to terminate its lease agreement as Urban Outfitters will be taking over the space," Virgin Entertainment Group said in prepared statement in response to a Deseret Morning News inquiry. "As a result Virgin Entertainment Group will cease trading at the Salt Lake City location on July 15."

The company, which launched its Utah store in late 2002, declined to comment beyond the statement. However, it said, Virgin "will endeavor to offer staff alternative suitable employment in other locations where this is practical and possible."

"Virgin Entertainment Group will continue to seek suitable locations in the region in which to operate Virgin Megastores that will meet both the needs of the company and its customers," the statement said.

Jake Boyer, president of The Boyer Co., which handles leasing for The Gateway, said the deal with Urban Outfitters was executed this week.

"It sticks with the strategy we've had of bringing new retailers to the market," Boyer said. "We recently brought Forever 21 at The Gateway, which is a one-of-a-kind tenant in the market, and this further adds to that, in that Urban Outfitters will be one-of-a-kind in this market.

"I think it's great for Salt Lake as we continue to bring new business to downtown, and to the state of Utah in general."

Boyer said he expects Urban Outfitters to open in its new space in early autumn.

Urban Outfitters markets its apparel, furniture, novelties and accessories lines toward "well-educated, urban-minded young adults," according to the company's Web site.

"Our stores offer a unique and eclectic mix of fashion merchandise in a lifestyle-sensitive store environment," the site said.

Urban Outfitters has 106 stores in the United States, Canada and Europe. The Gateway store marks its entry into the Utah market.

The Urban Outfitters Inc. umbrella includes Anthropologie, which also has a store at The Gateway.

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E-mail: jnii@desnews.com