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Fopp goes cash-only

25.06.07 Graeme Neill

Fopp has stopped taking orders via its website, and is only accepting cash payments within its shops as the chain continues what it described as "genuine and lengthy negotiations with its bank".

The moves follow the widely-reported closure of all of its 46 stores for an extraordinary stock take on Friday--just one week after cancelling orders from publishers. In a statement released over the weekend, the chain said: "Fopp continues genuine and lengthy negotiations with its bank, and is not in administration. Stock taking is now complete, stores re-opened on Saturday 23rd and will continue to remain open."

The chain is now only taking payments in cash across its entire chain. A notice on the retailer's website said: "Due to circumstances beyond our control we cannot currently take orders online. Sorry for any inconvenience caused." A notice on the tills within it stores stated it was having trouble with its "authorisation systems". A sales assistant said that the situation was "indefinite", adding that it had not received the week's new music releases because of "problems with its suppliers".

Fopp told publishers to stop supplying it with chart and backlist titles almost two weeks ago due to "unforeseen circumstances". The chain later blamed the disruption on the relocation of its warehouse, but publishers claimed they had not been told of the move in advance.

Retail analyst Nick Bubb, from Pali International, said that Fopp's decision in February to take over 67 stores from its failed rival Music Zone could be the cause of current events. "Taking on Music Zone was a risky move considering the retail market in that sector this year," he said. "When even someone like Tesco is saying that entertainment sales are weak it's a sign of the times of how the music and book retail market is performing."

Fopp began trading as an independent in Glasgow in 1981. Along with discounted chart and back catalogue music titles, it stocks an eclectic book selection including cult classics, entertainment books, lifestyle and quirky backlist alongside higher profile works.

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