Music retailer goes into administration
The collapse of independent music retailer Fopp was confirmed tonight following the appointment of administrators from Ernst & Young.
The move comes after the firm closed its doors yesterday, sent home its staff and stopped taking orders online.
Ernst & Young was appointed as receivers for Fopp and administrators to Music Zone. Fopp bought 68 stores from Music Zone in January after it went into administration in January.
The closure could still be temporary as Ernst & Young said it was looking at the firm’s books to assess the financial position of the group before deciding on its future.
Fopp, which started life as a market stall in Glasgow in 1981 and is best known for its cut-price CDs, DVDs and books, said earlier: “It is with great regret that we announce the closure of Fopp.
“Our store chain is profitable, well regarded and loved by our loyal customers and staff. However, we have failed to gain the necessary support from major stakeholders, suppliers and their credit insurers to generate sufficient working capital to run our expanding business.”
Ernst & Young said: “The stores were closed by management yesterday and shop staff sent home. We are currently assessing the financial position of the companies; once this has been completed we will have a better idea of the future of the businesses.”
