The long-rumored shake-up at Virgin Records began to take shape late yesterday when Virgin parent EMI Group said that Matt Serletic, chairman of the label, would leave his post.

Now all eyes are on Jason Flom, who quit as chairman of Warner Music Group's Atlantic Records two months ago after clashing with Warner chief executive Lyor Cohen. EMI is reportedly preparing to name Flom to succeed Serletic, according to The New York Times.

If EMI plans to revamp Virgin starting at the top, it would be the second time in less than four years it has chosen to do so.

In June 2002, Virgin hired then-31-year-old Serletic to run the label after he produced hit records for Matchbox Twenty and Aerosmith. At that time, Virgin moved its headquarters from Beverly Hills to New York City and lost approximately 80 percent of its staff through firings or departures.

Virgin has had a hit record with the Gorillaz's platinum-selling Demon Days this year, but the Rolling Stones' A Bigger Bang has been something of a disappointment, despite the band's sold-out US concert tour.

Flom was part of the group that bought Warner Music from Time Warner Inc. for $2.6 billion in 2004. He previously headed Lava Records, which Warner Music folded into Atlantic soon after Flom's departure. Lava, a joint venture between Flom and Atlantic, was home to Click Five, Simple Plan, and Australia's John Butler Trio.

A 26-year Atlantic veteran, Flom is known for developing such bands as Sugar Ray, Kid Rock, Tori Amos, Skid Row, Twisted Sister, and Matchbox Twenty.

EMI said in a statement that David Munns, chairman and CEO of EMI Music North America, will oversee Virgin until a successor is named.