Update: Fopp faces administration

Update: Fopp faces administration

<p>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 &amp; 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. </p><p>Calls made to those branchces that open at 9am were not answered, and there was no response from the company&#39;s press office. Both the FT and Telegraph report that it has gone into administration. </p><p> Fopp has previously denied that it would go into administration, despite cancelling book orders and operating as a cash only business. </p><p>The Times reported that Fopp was last night preparing to appoint Colin Dempster of Ernst &amp; Young as administrator as it warned some staff not to expect their monthly pay. A spokeswoman for Ernst &amp; Young said: &quot;We have been brought in to discuss the options with the management.&quot; She added that they involved administration, receivership or insolvency but cautioned that Mr Dempster had not yet been officially appointed by the court.</p><p>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.</p><p>Though not due to open until 10am, its branch just off Charing Cross Road remained locked at 11.30am. </p>