Fopp: receivers appointed

Fopp: receivers appointed

<p>Tom Burton and Colin Dempster from Ernst &amp; Young have been appointed joint receivers of Fopp and joint administrators to Music Zone 2007, ending speculation about the future of the troubled chain. It was too soon to tell whether the shops would be reopened, and whether the receiver would try to sell the business as a going concern. </p><p> One of the joint administrators, Tom Burton, commented: &ldquo;The stores have been closed by management yesterday and shop staff sent home. We are currently assessing the financial position of the companies; once this has been completed we will have a better idea of the future of the businesses.&quot;</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 is a retailer of music, film and books in the United Kingdom that began as a one-man stall in Glasgow, Scotland in 1981. &nbsp;It has undergone significant store expansion over the last two years. Earlier this year it acquired 68 Music Zone stores out of administration, many of these have subsequently been closed. There are now 50 Fopp stores and 31 Music Zone stores across the UK with approximately 800 employees. &nbsp; <br /><br /></p>