The Bookseller.com

4th July 2009

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Fopp admits to 'difficulties'

25.06.07 Philip Jones

Gordon Montgomery chairman and a major shareholder of the retail chain Fopp, has admitted that the business is "experiencing difficulties", but has said that the board will not call in the administrators. The revelation comes barely a week after theBookseller.com broke the news that the chain had told publishers to stop supplying it with books.

According to the Telegraph, the chain closed its 50 stores on Friday for an extra-ordinary stock take and the management has now launched a strategic review with its bankers. Montgomery told the newspaper: "We are experiencing difficulties. However, I can categorically state we will not go into administration."

The news will cause further worry among publishers, many of whom reacted with surprise rather than alarm at the chain's decision to cancel book orders last week. Fopp then blamed the disruption on a warehouse relocation. Publishers spoken to by The Bookseller said they had not been informed of the warehouse move in advance. Another claimed the company owed it overdue ­payments. However, most were supportive of a business that has become a significant outlet for many publishers, shifting a mix of cult classics, entertainment books, lifestyle and quirky backlist alongside higher profile works.

Fopp, which started life as an independent in Glasgow 26 years ago, now operates 46 stores across the UK. According to the Telegraph, a bullish move in February to take over 67 stores from the administrators of failed rival Music Zone is understood to have put pressure on cashflow.

Telegraph

Retail Philip Jones Fopp David Montgomery