Fopp closes down music stores
Fopp was known for its cheap CDs
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Friday, 29, Jun 2007 04:28
Music retail chain Fopp has announced the closure of all of its UK stores after rumours of the company's demise circulated yesterday.
It is understood the firm is to appoint Ernst & Jones as administrators after closing its flagship store in London earlier this week.
In a statement the company said it remained a profitable business and was sorry to announce its closure.
"It is with great regret that we announce the closure of Fopp. Our store chain is profitable, well regarded and loved by our loyal customers and staff," the statement said.
"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."
Fopp is known for its cheap CDs and recently expanded its business when it purchased a number of other stores.
But in a tough trading environment which has seen fellow music retailer HMV's profits drop, Fopp has struggled against internet sales and downloads.
The company was founded by Gordon Montgomery as a market stall in the early 1980s and grew to become one of the UK's largest music retailers.
But despite launching a new website, which is now closed and not taking orders, the company has had to close.