Music shop shuts its doors after 25 years
Music chain Fopp has closed, the company announced today (June 29).
The firm which was known for its cheap CDs, DVDs and books was recently in talks with Ernst and Young about the possibility of going into administration.
However the company issued this statement: “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.
“We would like to thank staff and customers for their support over the past 25 years.”
Fopp had been in talks with its bankers, HBOS, about the future of the struggling firm.
Employees said that they had been informed by management that they will not receive their monthly salaries.
Last Friday (June 22) Fopp closed about 50 shops including its flagship central London branch.
When they reopened, stores were only accepting cash only while online sales were stopped.
Analysts said that the chain has been hit by the rise of supermarkets and online retailers selling CDs and DVDs as well as surging popularity of downloading music from the internet.
Similar factors led to HMV announcing on Thursday (June 28) that its annual profits had more than halved.