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                                                                   EXHIBIT 10.58


                              EMPLOYMENT AGREEMENT
                                  (Louis Virag)

THIS AGREEMENT is by and between Value City Department Stores, Inc. ("Company")
and Louis Virag ("Executive"), and is effective as of the date it has been fully
executed by both parties.

Company agrees to employ Executive as Senior Vice President, Men's and Women's
Merchandising, and Executive hereby accepts such employment and agrees to serve
Company subject to the general supervision, advice and direction of Company's
President or his designee, and upon the following terms and conditions:

1.       Position and Duties. Effective July 14, 1997, Executive shall be
employed as Company's Senior Vice President, Men's and Women's Merchandising,
with such authority and duties as are customary for this position, and shall
perform such other services and duties as the President or his designee may from
time to time designate.

         1.1. Executive agrees to devote his full business time, best efforts,
and undivided attention to the business and affairs of Company, except for any
vacations, illness, or disability. Executive shall not engage in any other
businesses that would interfere with his duties, provided that nothing contained
herein is intended to limit Executive's right to make passive investments in the
securities of publicly-owned companies or other businesses which will not
interfere or conflict with his duties hereunder.

         1.2. Executive agrees that he shall at all times observe and be bound
by all rules, policies, practices, and resolutions heretofore or hereafter
adopted in writing by the Company which are generally applicable and provided to
Company's officers and employees and which do not otherwise conflict with this
Agreement.

2.       Term. This Agreement shall terminate three years from Executive's first
date of employment unless sooner terminated as provided herein; provided,
however, that this Agreement shall be extended automatically for successive
12-month periods unless either party notifies the other of an intent to
terminate, in writing, at least 60 calendar days prior to the date of automatic
extension (July 14).

3.       Compensation.

         3.1. Base Salary. Beginning on July 14, 1997, Company shall pay
Executive an annual base salary of $450,000 as compensation for his services
hereunder, payable in equal installments in accordance with Company's payroll
practices for executive employees. Company's Board of Directors ("Board") may
increase Executive's base salary at their discretion.
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         3.2.     Bonus.

                  3.2.1. Performance Bonus. During the term of this Agreement,
Executive will be eligible to receive an annual performance bonus targeted at
50% of his base salary. This bonus shall be calculated based on agreed- upon,
Board-approved, pre-determined performance targets and measures set prior to the
end of each fiscal year. Any performance bonus determined to be due will be paid
within 120 calendar days after the close of Company's fiscal year and completion
of an outside audit by Company's then current outside audit firm.

                  3.2.2. Signing Bonus. Executive shall receive a lump-sum
payment of $50,000 within 10 days after this Agreement has been signed by both
parties.

         3.3.     Stock.

                  3.3.1. Stock Grant. Executive shall receive a stock grant of
25,000 shares of common stock ("restricted stock") within 30 calendar days after
this Agreement has been signed by both parties. This stock grant will be subject
to all terms and conditions set forth in the "Restricted Stock Agreement"
attached hereto which provides, among other things, that (i) the grant vests at
the rate of 20% per anniversary year of employment, (ii) any unvested portion
will be forfeited upon Executive's voluntary resignation, and (iii) the grant
will vest 100% if Company terminates Executive's employment, except for cause.

                  3.3.2. Stock Options. Executive shall receive 75,000 incentive
stock options granted as of his first day of employment. All options granted
hereunder shall be priced and subject to exercise in accordance with Company's
"1991 Stock Option Plan" attached hereto.

         3.4. Vacation. During the term of this Agreement, Executive shall be
entitled to vacation commensurate with other senior executives. The dates of
said vacations shall be mutually agreed upon by Company's President or his
designee and Executive.

         3.5. Car. During the term of this Agreement, Company will pay Executive
a car allowance of $15,000 per year, grossed up for tax purposes, to be paid on
a monthly basis. (The term "grossed up" as used in this Agreement refers to a
payment to Executive in an amount that, after reduction for any income or excise
taxes due, is equal to the net amount payable.)

         3.6. Business Expenses. Company shall pay, advance or reimburse
Executive for all normal and reasonable business-related expenses, including
travel expenses, incurred in the performance of his duties on the same basis as
paid to other


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senior executives. Company shall furnish Executive with company credit cards
provided to other senior executives for use solely in the performance of his
duties.

         3.7. Taxes. The compensation provided to Executive hereunder shall be
subject to any withholdings and deductions required by any applicable tax laws.

         3.8. Benefit Plans. Executive is entitled to participate in any
deferred compensation or other employee benefit plans, including any profit
sharing or 401(k) plans; group life, health, hospitalization and disability
insurance plans; discount privileges; and other employee welfare benefits made
available generally to, and under the same terms as, Company's executives. Until
Executive is eligible to participate in Company's health plan (October 1, 1997),
Company will pay Executive its share of the Company's monthly health plan
premium, grossed up for tax purposes, to apply toward continuing health coverage
with his prior employer (COBRA).

4.       Relocation.

         4.1. For a reasonable time prior to Executive's relocation to Columbus,
OH, and upon Executive's submission of appropriate expense reports and receipts,
Company will pay for Executive's commuting expenses between Columbus, OH, and
his primary residence, and his living expenses in Columbus, OH, in a temporary
residence that is agreed upon mutually by the parties.

         4.2. Company will pay reasonable and customary relocation expenses for
Executive when he relocates himself and his immediate family from his primary
residence in Seattle, WA, to Columbus, OH. (By way of example, "reasonable and
customary" does not include horses, large boats, or antique automobiles.)
Subject to any other provisions of this Agreement, Executive agrees to handle
relocation in accordance with Company's standard relocation practice for senior
executives. Company agrees to reimburse Executive, after submission of the
appropriate expense reports and receipts, for all reasonable out-of-pocket
expenses related to said relocation.

         4.3. If any of these expenses are determined to be taxable, they will
be grossed up.

5.       Executive's Obligations.

         5.1. Confidential Information. Executive agrees that during and after
his employment, any "confidential information" as defined below shall be held in
confidence and treated as proprietary to Company. Executive agrees not to use or
disclose any confidential information except to promote and advance the business
interests of Company. Executive agrees that upon his separation from employment,
for any reason


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whatsoever, he shall not take or copy, and shall immediately return to Company,
any documents that constitute or contain confidential information. "Confidential
information" includes, but is not limited to, any confidential data, figures,
projections, estimates, pricing data, customer lists, buying manuals or
procedures, distribution manuals or procedures, other policy and procedure
manuals or handbooks, supplier information, tax records, personnel histories and
records, information regarding sales, information regarding properties and any
other confidential information regarding the business, operations, properties or
personnel of Company which are disclosed to or learned by Executive as a result
of his employment, but shall not include his personal personnel records.
Confidential information shall not include any information that (i) Executive
had in his possession prior to his first performing services for Company; (ii)
becomes a matter of public knowledge thereafter through sources independent of
Executive; (iii) is disclosed by Company without restriction on its use; or (iv)
is required to be disclosed by law or governmental order or regulation.

         5.2.     Solicitation.

                  5.2.1. Employees. Executive agrees that during his employment
and following the end of his employment, for any reason, he shall not, directly
or indirectly, solicit Company's employees to leave their employment; he shall
not employ or seek to employ them; and, he shall not cause or induce any of
Company's competitors to solicit or employ Company's employees.

                  5.2.2. Third Parties. Executive agrees that during his
employment and following the end of his employment, for any reason, he shall
not, either directly or indirectly, recruit, solicit or otherwise induce or
influence any customer, supplier, sales representative, lender, lessor or any
other person having a business relationship with Company to discontinue or
reduce the extent of such relationship except in the course of his duties
pursuant to this Agreement and with the good faith objective of advancing
Company's business interests.

         5.3. Noncompetition. Executive agrees that for any period of salary
continuation following the end of his employment, for any reason, he shall not,
either directly or indirectly, accept employment with, act as a consultant to,
or otherwise perform the same services (which shall be determined regardless of
job title) for any business that directly competes with Company's business,
which shall be understood as the sale of off-price merchandise.

         5.4.     Cooperation.

                  5.4.1. With Company. Executive agrees to cooperate with
Company during the course of all third-party proceedings arising out of
Company's business about which Executive has knowledge or information. Such
proceedings may include,


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but are not limited to, internal investigations, administrative investigations
or proceedings, and lawsuits (including pre-trial discovery). For purposes of
this paragraph, cooperation includes, but is not limited to, Executive's making
himself available for interviews, meetings, depositions, hearings, and/or trials
without the need for subpoena or assurances by Company, providing any and all
documents in his possession that relate to the proceeding, and providing
assistance in locating any and all relevant notes and/or documents.

                  5.4.2. With Third Parties. Executive agrees not to communicate
with, or give statements or testimony to, any opposing attorney, opposing
attorney's representative (including private investigator), or current or former
employee relating to any matter about which Executive has knowledge or
information as a result of his employment with Company unless compelled to do so
by lawfully-served subpoena or court order. Such matters specifically include,
but are not limited to, any pending or threatened lawsuits or administrative
investigations. Executive also agrees to notify Company's President immediately
if he is contacted by a third party or compelled by subpoena or court order to
appear and testify, whichever occurs first.

                  5.4.3. With Media. Executive agrees not to communicate with,
or give statements to, any member of the media (print, television or radio)
relating to any matter about which Executive has knowledge or information as a
result of his employment. Such matters specifically include, but are not limited
to, any pending or threatened lawsuits or administrative investigations.
Executive also agrees to notify Company's Chairman or President immediately if
he is contacted by any member of the media.

         5.5. Remedies. Executive agrees that any disputes under paragraph 5
shall not be subject to arbitration. If Executive breaches paragraph 5, the
damage will be substantial, although difficult to quantify, and money damages
may not afford Company an adequate remedy; therefore, if Employee breaches or
threatens to breach this paragraph, Company shall be entitled, in addition to
other rights and remedies, to specific performance, injunctive relief and other
equitable relief to prevent or restrain such conduct.

6.       Termination and Related Benefits.

         6.1. Death. This Agreement shall terminate automatically upon
Executive's Death, and Company shall pay his surviving spouse, or if he leaves
no spouse, his estate, any base salary earned by Executive, and any rights or
benefits that have vested. In addition, Company shall pay Executive's surviving
spouse, or if he leaves no spouse, his estate, the pro rata share of any bonus
that, but for Executive's death, would otherwise have been payable to Executive,
including any unpaid signing bonus. Any pro rata share shall be determined based
on the number of days that


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Executive was actively employed on a full-time basis during the bonus year.

         6.2. Permanent Disability. Upon Executive's permanent disability,
Company shall have the right to terminate this Agreement immediately with
written notice. For these purposes, permanent disability shall mean that
Executive fails to perform his duties on a full-time basis for a period of more
than 90 calendar days during any 12-month period, due to a physical or mental
disability or infirmity. If this Agreement is terminated due to Executive's
permanent disability, Company shall pay Executive any base salary earned and any
rights or benefits that have vested. In addition, Company shall pay Executive
the pro rata share of any bonus that, but for termination, would otherwise have
been payable to Executive. Any pro rata share shall be determined based on the
number of days that Executive was actively employed on a full-time basis during
the bonus year.

         6.3.     Termination by Company.

                  6.3.1. At End of Term. Company may terminate this Agreement at
the end of its term by giving 60 calendar days' written notice to Executive.
Company may, in its sole discretion, require Executive to cease active
employment and pay out the 60-day notice period. Company shall thereafter have
no obligations or liabilities under this Agreement, unless otherwise provided
herein.

                  6.3.2. During the Term. Except as provided below in paragraph
6.3.3., Company may terminate this Agreement during its term, for any reason,
upon 30 days' written notice to Executive. Company may, in its sole discretion,
require Executive to cease active employment immediately. In the event of such a
termination, Company shall pay Executive a severance amount equal to the greater
of (i) Executive's base salary through the remainder of the term of this
Agreement, or (ii) one year's base salary. Company shall also provide health
benefits (including dental, disability and life insurance) during the period of
any salary continuation under the same terms as provided to other Company
executives, unless he becomes eligible for similar health benefits under another
plan. Company shall thereafter have no further obligations or liabilities under
this Agreement, unless otherwise provided herein.

                  6.3.3. For Cause. Company may terminate this Agreement during
its term if it has "cause" to do so. For purposes of this paragraph, the term
"cause" means the following:

         (i)      willful violation of laws and regulations governing Company;

         (ii)     willful failure to substantially comply with any material
         terms of this Agreement, provided Company shall make a written demand
         for substantial compliance setting forth the specific reason(s) for
         same and Executive shall have


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         60 days to cure, if possible;

         (iii)    willful breach of fiduciary duties;

         (iv)     willful damage, willful misrepresentation, or willful
         dishonesty which Company determines has had or is likely to have a
         material adverse effect upon Company's operations, assets, or financial
         conditions; or

         (v)      willful breach of any stated material employment policy of
         Company.

Failure to meet performance targets and measures shall not constitute "cause" as
that term is used herein. Executive may have an opportunity to be heard by the
Board prior to a termination for cause. For purposes of this paragraph,
Executive's acts or omissions shall be considered "willful" if done without a
good faith, reasonable belief that such act or omission was in Company's best
interest. In the event of termination for cause, Company's obligations hereunder
cease on Executive's last day of active employment, unless otherwise provided
herein.

                  6.3.4. Method of Payment. Executive agrees that Company shall
have the option of paying the present value of any amount(s) due under this
paragraph in a lump sum or in the form of salary continuation, but in no event
shall such payout period exceed the longer of (i) the remainder of the term of
this Agreement, or (ii) one year. For purposes of paragraph 5 (noncompetition),
if a present value lump sum is paid, the period of salary continuation shall be
the period covered by the lump sum. Present value shall be calculated based upon
National City Bank's prime interest rate.

         6.4.     Termination by Executive.

                  6.4.1. At End of Term. Executive may terminate this Agreement
at the end of its term by giving 60 calendar days' written notice to Company's
Chairman. Company may, in its sole discretion, accept Executive's termination
effective immediately; provided, however, that it shall continue to pay
Executive for 60 calendar days. Company shall thereafter have no obligations to
Executive under this Agreement.

                  6.4.2. Voluntary Resignation. Executive may terminate this
Agreement by his voluntary resignation. Executive shall give at least 60
calendar days' written notice of his intention to resign to Company's Chairman,
which Company may accept immediately. In the event of Executive's resignation,
Company will have no further obligations or liability hereunder except as
provided herein.

         6.5. Salary Due at Termination. In the event of any termination of
Executive's employment under this Agreement, Executive (or his estate) shall be
paid


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any unpaid portion of his salary that has accrued by virtue of his employment
during the period prior to termination, and any unpaid, declared bonus, together
with any unpaid business expenses properly incurred under this Agreement prior
to termination. Such amounts shall be paid within 15 days of the date of
termination.

         6.6.     "Parachute Payments" under the Internal Revenue Code ("Code").

                  6.6.1. For purposes of paragraph 6.6., the terms "parachute
payment," "excess parachute payment," "present value," "base amount," and
"excise tax" have the meanings ascribed to them in Sections 280G and 4999 of the
Code.

                  6.6.2. The amounts, benefits, and rights to be provided to
Executive upon a termination of employment under this Agreement are considered
"severance benefits." No severance benefits shall be payable to Executive to the
extent that the total of such benefits and any payments, which would be deemed
under Section 280 of the Code to constitute "parachute payments," would equal or
exceed in their present value three times Executive's base amount. If this were
to occur, any severance benefits payable to Executive shall be made only in
accordance with subparagraph 6.6.3 below, notwithstanding any other provision in
this Agreement.

                  6.6.3. Not later than 30 days after the date of termination,
Company shall provide Executive with a schedule specifying the present value of
the severance benefits that, in Company's opinion, could constitute parachute
payments under Section 280G of the Code. No severance benefits payable under
this Agreement shall be made until 30 days from the receipt of such schedule by
Executive. At any time prior to the expiration of said 30-day period, Executive
may select from all or part of any category of payment to be made under this
Agreement those payments to be made to him in an amount the present value of
which (when combined with the present value of any other payments otherwise
payable to Executive by Company that may be deemed parachute payments) is less
than three times Executive's base amount. If Executive fails to make such
selection, Company shall do so.

                  6.6.4. The references to Code Sections 280G and 4999 are
specific references to such sections as in effect on the date of this Agreement.
If either section is amended prior to the expiration or termination of this
Agreement, or replaced by a successor statute, the limitations imposed by this
paragraph upon payments to be made to Executive shall be deemed modified without
further action of the parties so as to provide only for such limitations that
are consistent with such amendment(s) or successor statute(s), as the case may
be. If Section 4999, or its successor statute, is repealed, this paragraph shall
cease to be effective as of the date of such repeal. The parties to this
Agreement recognize that final Treasury Regulations under Section 280G may
affect the amounts payable hereunder and agree that, upon issuance of any such
final Regulations, this paragraph may be modified as in good faith deemed
necessary in


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light of the provisions of such final Regulations to achieve the purposes
hereof, and that consent to such modification(s) shall not be unreasonably
withheld.

7.       Arbitration. Unless stated otherwise herein, the parties agree that
arbitration shall be the sole and exclusive remedy to redress any dispute, claim
or controversy involving the interpretation of this Agreement or the terms,
conditions or termination of this Agreement or the terms, conditions or
termination of Executive's employment with Company. The parties intend that any
arbitration award shall be final and binding and that a judgment on the award
may be entered in any court of competent jurisdiction and enforcement may be had
according to its terms. This paragraph shall survive the termination or
expiration of this Agreement.

         7.1. Arbitration shall be held in Columbus, Ohio, and shall be
conducted by a retired federal judge or other qualified arbitrator mutually
agreed upon by the parties in accordance with the Voluntary Arbitration Rules of
the American Arbitration Association then in effect. The parties shall have the
right to conduct discovery pursuant the Federal Rules of Civil Procedure;
provided, however, that the Arbitrator shall have the authority to establish an
expedited discovery schedule and cutoff and to resolve any discovery disputes.
The Arbitrator shall not have jurisdiction or authority to change any provision
of this Agreement by alterations of, additions to or subtractions from the terms
hereof. The Arbitrator's sole authority in this regard shall be to interpret or
apply any provision(s) of this Agreement. The Arbitrator shall be limited to
awarding compensatory damages, including unpaid wages or benefits, but shall
have no authority to award punitive, exemplary or similar-type damages.

         7.2. Any claim or controversy not sought to be submitted to
arbitration, in writing, within 120 days of when it arose shall be deemed waived
and the moving party shall have no further right to seek arbitration or recovery
with respect to such claim or controversy.

         7.3. The arbitrator shall be entitled to award expenses, including the
costs of the proceeding, and reasonable counsel fees.

         7.4. The parties hereby acknowledge that since arbitration is the
exclusive remedy, neither party has the right to resort to any federal, state or
local court or administrative agency concerning breaches of this Agreement,
except as otherwise provided herein in paragraph 5, and that the decision of the
Arbitrator shall be a complete defense to any suit, action or proceeding
instituted in any federal, state or local court before any administrative agency
with respect to any arbitrable claim or controversy.

8.       General Provisions.


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         8.1. The parties agree that the covenants and promises set forth in
paragraphs 5, 6 and 7 shall survive the termination of this Agreement and
continue in full force and effect.

         8.2. Company shall pay Executive's reasonable legal fees up to a
maximum of $1,000 in connection with the negotiation of this Agreement.

         8.3. Except as otherwise provided in paragraph 7.2, Failure to insist
upon strict compliance with any term hereof shall not be considered a waiver of
any such term.

         8.4. This Agreement and its two attachments, along with any other
document or policy or practice referenced herein (which are collectively
referred to as "Agreement" herein), contain the entire agreement of the parties
regarding Executive's employment and supersede any prior written or oral
agreements or understandings relating to the same. No modification or amendment
of this Agreement shall be valid unless in writing and signed by or on behalf of
both parties.

         8.5. Once signed by both parties, this Agreement shall be binding upon
and shall inure to the benefit of the heirs, successors, and assigns of the
parties.

         8.6. This Agreement is intended to be performed in accordance with, and
only to the extent permitted by, all applicable laws, ordinances, rules and
regulations. If any provisions of this Agreement, or the application thereof to
any person or circumstance, shall, for any reason and to any extent, be held
invalid or unenforceable, such invalidity and unenforceability shall not affect
the remaining provisions hereof and the application of such provisions to other
persons or circumstances, all of which shall be enforced to the greatest extent
permitted by law.

         8.7. The validity, construction, and interpretation of this Agreement
and the rights and duties of the parties hereto shall be governed by the laws of
the State of Ohio, without reference to the Ohio choice of law rules.

         8.8. Any written notice required or permitted hereunder shall be
mailed, certified mail, or hand-delivered, addressed to Company's Chairman at
Company's then principal office, or to Executive at the most recent home
address. Notices are effective upon receipt.

         8.9. The rights of Executive under this Agreement shall be solely those
of an unsecured general creditor of Company.

         8.10. The headings in this Agreement are inserted for convenience of
reference only and shall not be a part of or control or affect the meaning of
any provision hereof.


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IN WITNESS WHEREOF, the parties have duly executed and delivered this Agreement
consisting of ten pages.

                                    EXECUTIVE

                                    
                                    /s/ Louis Virag                       
                                    --------------------------------------
                                    Louis Virag

                                    Signed: June ____ , 1997


                                    VALUE CITY DEPARTMENT STORES, INC.


                                    By: /s/ Jay Schottenstein             
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                                         Jay Schottenstein
                                         Chairman

                                         Signed: June _____ , 1997


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