Music
Entertainment retailer Fopp has closed doors at its stores across the country as it wrangles with financial problems.
The company has also ceased online sales and told staff they will not be paid this month.
It is in talks with bankers, suppliers and accountants Ernst and Young and a statement released to media said it "continues genuine and lengthy negotiations with its bank and is not in administration".
Store managers have been told company bosses are seeking to solve "wage payments, our refinancing and seek reinstatement of the suppliers' licence to sell".
The store, renowned for cheap CDs and DVDs, may have grown too fast for its own good, according to BBC business expert Robert Plummer.
He said: “Fopp started off as a market stall in Glasgow and grew to become the biggest independent chain of music stores in Britain after HMV and Virgin.
"It bought 67 stores recently from another chain that went under, Music Zone, and it seems that they might have grown too far too fast, that this might have put pressure on the firm’s cash flow."
The company has also ceased online sales and told staff they will not be paid this month.
It is in talks with bankers, suppliers and accountants Ernst and Young and a statement released to media said it "continues genuine and lengthy negotiations with its bank and is not in administration".
Store managers have been told company bosses are seeking to solve "wage payments, our refinancing and seek reinstatement of the suppliers' licence to sell".
The store, renowned for cheap CDs and DVDs, may have grown too fast for its own good, according to BBC business expert Robert Plummer.
He said: “Fopp started off as a market stall in Glasgow and grew to become the biggest independent chain of music stores in Britain after HMV and Virgin.
"It bought 67 stores recently from another chain that went under, Music Zone, and it seems that they might have grown too far too fast, that this might have put pressure on the firm’s cash flow."
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