Fopp: supermarkets had 'an effect'

Fopp: supermarkets had 'an effect'

<p>Fopp&#39;s founder Gordon Montgomery has hinted that competition from supermarkets was one of the causes of the collapse of his entertainment chain. Speaking to the Scotsman, Montgomery last night said supermarket sales had &quot;an effect&quot; on his business, but refused to comment further.<br /><br />Fopp went into receivership late last week, after failing to negotiate new deals with its suppliers. Yesterday, receiver Ernst &amp; Young let 700 of the 800 employees go.<br /><br />There has been speculation that the company&#39;s acquisition of 67 stores from the chain Music Zone, which closed in January, was the primary cause. But pressure from the supermarkets was blamed for last week&#39;s announcement by the music retailer HMV that pretax profits had more than halved from &pound;98.2m to &pound;48.1m.<br /><br />The Entertainment Retailers Association (ERA), the trade group, tells the newspaper that Fopp&#39;s problems were due to a rush for growth rather than systemic problems in music sales. ERA&#39;s spokesman, Kim Bayley, said: &quot;It&#39;s really very sad, Fopp was one of the best independent music retailers out there. There was always a concern that Fopp simply grew too quickly.&quot; <br /></p>