Fopp closes down its 105 stores

Music retailer Fopp has announced it is shutting down its 105 shops, as the firm becomes the latest victim of the slump in CD sales.

 

"It is with great regret that we announce the closure of Fopp," said a spokesman for the company.

 

Fopp said it was profitable and well regarded but had failed to gain support from stakeholders and suppliers.

 

Fopp - known for cheap CDs, DVDs and books - has called in accounting firm Ernst & Young as administrators.

 

"The stores have been closed by management and shop staff sent home," said Colin Dempster, one of the joint administrators at Ernst & Young.

 

"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," he added.

 

Fopp has also been in talks with its bankers, HBOS, about its future.

 

"We would like to thank staff and customers for their support over the past 25 years," the spokesman said.

 

Employees have contacted the BBC saying they have been informed by management that that they will not receive their monthly salaries.

 

Fopp closed about 50 shops for one day last week - including its flagship central London branch - for an extraordinary stock check.

 

When they reopened, stores were accepting cash only, while online sales were stopped.

 

Branches were closed again on Friday - with phones remaining unanswered at stores around the UK.

 

Expansion

 

Analysts say that the chain has been hit by the rise of supermarkets and online retailers selling CDs and DVDs, as well as the surging popularity of downloading music from the internet.

 

Similar factors led to HMV announcing on Thursday that its annual profits had more than halved.

 

There is also speculation that Fopp's purchase of 67 stores from the administrator of music retailer Music Zone had put pressure on the firm's cash flow.

 

That deal trebled the number of branches of Fopp, which was originally set up from a market stall in Glasgow.

 

A document issued to store managers, seen by the BBC, said there would be temporary closures "whilst we resolve the wage payments, our refinancing and seek reinstatement of the suppliers' licence to sell".

 

It includes details of how staff should close their shops, and where they should send keys.

 

One Fopp employee said staff were informed by e-mail on Thursday afternoon about the closure of stores.

 

"There are negotiations over wages taking place, but for all intents and purposes, the several hundred ex-employees of Fopp have no means of paying rent, bills or buying food and have wasted a month of their life working for free," the employee said.

 

Story from BBC NEWS:

http://news.bbc.co.uk/go/pr/fr/-/1/hi/business/6252300.stm

Never heard of it.

It's a sign of the changing times, anyway.;)

Shame, Fopp was always a really nice place to shop, friendly, cheap and good choice, oh well...

Never heard of it.

It's a sign of the changing times, anyway.;)

 

It's people like you, whom are killing the CD market.

 

Soon the only places you can buy actual CDs (downloads are good, until you have a crash) will be online shops or from Tescos.

It's people like you, whom are killing the CD market.

 

Soon the only places you can buy actual CDs (downloads are good, until you have a crash) will be online shops or from Tescos.

 

I do buy my CDs online - they're far cheaper and it's far more convenient to shop from your living room.;)

My latest purchase was waiting in my mail box when I opened it this afternoon.

I very rarely find myself in a CD shop nowadays as I have no reason to visit one.

I could say the same about lots of other types of shops, too.

Really gutted, not least because I still have vouchers for the place! Often stop into the store in Glasgow and the staff were cool, feel really sorry for them, they were always helpful when looking for awkward stuff. I blame the industry though, charging £13.99 and more for CDs and DVDs that cost pence to make, £4.99 for a poxy CD single. Then when the opportunity arose to sell tunes online they invent dozens of different file types and programs and players to confuse the hell out of everyone. 79p for an iTune is crazy, especially when you want an album's worth and especially when then you can only use them on Apple hardware. Saddened by the loss of Fopp, but not surprised really.

Really gutted, not least because I still have vouchers for the place! Often stop into the store in Glasgow and the staff were cool, feel really sorry for them, they were always helpful when looking for awkward stuff. I blame the industry though, charging £13.99 and more for CDs and DVDs that cost pence to make, £4.99 for a poxy CD single. Then when the opportunity arose to sell tunes online they invent dozens of different file types and programs and players to confuse the hell out of everyone. 79p for an iTune is crazy, especially when you want an album's worth and especially when then you can only use them on Apple hardware. Saddened by the loss of Fopp, but not surprised really.

 

I agree. The high street shops have always charged extortionate prices, and this was highlighted still further once the online shops started to spring up.

I've probably bought far more CDs online than I ever did from high street stores for that very reason.

I've also always been anti-iPod for the reasons you have stated above.

I've just been given an iPod shuffle and it appears to be a load of hassle to charge it up and even load it compared to standard mp3 players, with which I have had no problems.;)

I bought a Sony Walkman that uses a thing called an Atrac file or something and Sonicstage. For every tune you want to load up you could go away, have a cup of tea and a bun and a wee rest and come back and it still wouldn't finished! £100 it cost and the £9.99 job from Tesco's is better lol

I bought a Sony Walkman that uses a thing called an Atrac file or something and Sonicstage. For every tune you want to load up you could go away, have a cup of tea and a bun and a wee rest and come back and it still wouldn't finished! £100 it cost and the £9.99 job from Tesco's is better lol

 

I couldn't agree more. I bought one of those £10 ones from Tesco too!!:P

Always a good thing to support these small independent shops like Tesco I think lol

Always a good thing to support these small independent shops like Tesco I think lol

 

Well shopping at Tesco is extremely convenient and very often cost-effective, as is online shopping. That's what matters.;)

Singles are a rip-off anyway, doesn't matter where you buy them from.

Singles are a rip-off anyway, doesn't matter where you buy them from.

 

True. The single is dead.;)

It's not dead quite yet, it wouldn't be soon until vinyl singles overtake CD singles

It's not dead quite yet, it wouldn't be soon until vinyl singles overtake CD singles

 

I can't understand why anyone would still want to buy vinyl.:dozey:

I prefer iTunes for single b-sides. They have 99% of the b-sides on there.

I prefer iTunes for single b-sides. They have 99% of the b-sides on there.

 

Are you really that interested in b-sides?:dozey:

If it's just a live track i ingore it, but if it's an acoustic mix or a new song than there is nothing wrong with having a listen.

If it's just a live track i ingore it, but if it's an acoustic mix or a new song than there is nothing wrong with having a listen.

 

Maybe, but listening and forking out are different things entirely...................

Only if your tight about money :)

Only if your tight about money :)

 

Or if you have better things to do with it.:rolleyes:

i've never heard of it to be honest.