Fopp closes doors as administration looms

Fopp closes doors as administration looms

<p>Entertainment chain Fopp has officially closed down, it has been confirmed. It follows media reports today that suggested it was about to be put into administration. Its stores have not opened today, and staff have been told not to expect to be paid this month. </p><p> A statement put out by its management at 12.30 today read: &quot;It is with great regret that we announce the closure of Fopp. Our 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.&quot;</p><p>A spokeswoman for Ernst &amp; Young said it had not yet been appointed as the official administrator. &quot;There is a formal process to go through,&quot; she told <em>The Bookseller</em>. A statement is expected later in the day.</p><p>One Fopp employee told the BBC that staff were informed by e-mail on Thursday afternoon about the closure of stores.</p><p>Fopp first alarmed publishers two weeks ago when it cancelled book orders. It told The Bookseller the move was due to a change in its warehouse locations. The following week however the chain was forced to temporarily close its shops for one day for an emergency stocktake. It reopened them, but has only be taking payments in cash.</p><p>Fopp celebrated its 25th anniversary as an independent retailer last year, after starting life as a market stall in Glasgow. It operates 46 stores across the UK. In February, it bought the 67 stores owned by rival retailer Music Zone after the chain went into administration. <br /> </p>