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Update: Fopp faces administration

29.06.07 Philiip Jones

There are reports this morning that struggling entertainment chain Fopp has gone into administration and that its stores will not open today. A spokeswoman for Ernst & Young confirmed that it was in talks with the management, but that the firm had not yet been appointed as administrator. A further announcement was expected later in the day.

Calls made to those branchces that open at 9am were not answered, and there was no response from the company's press office. Both the FT and Telegraph report that it has gone into administration.

Fopp has previously denied that it would go into administration, despite cancelling book orders and operating as a cash only business.

The Times reported that Fopp was last night preparing to appoint Colin Dempster of Ernst & Young as administrator as it warned some staff not to expect their monthly pay. A spokeswoman for Ernst & Young said: "We have been brought in to discuss the options with the management." She added that they involved administration, receivership or insolvency but cautioned that Mr Dempster had not yet been officially appointed by the court.

The Bookseller first reported that Fopp was in trouble two weeks ago when it cancelled book orders from publishers. At the time it stated that this was a temporary measure caused by a change in warehouses. Since Monday, however, the chain has only been accepting cash purchases, and closed its website for all orders, fuelling speculation about its future.

Though not due to open until 10am, its branch just off Charing Cross Road remained locked at 11.30am.

The Times

Retail Fopp Philiip Jones

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