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From The Times
June 30, 2007

Fopp closes stores after bailout by Virgin fails

Robert Lindsay

Fopp, one the country’s biggest music store groups with about 80 shops and 800 staff, yesterday called in receivers after a last-ditch bailout by Sir Richard Branson’s Virgin Megastores failed to win support from its suppliers.

All the stores were closed and staff were sent home, their monthly salaries unpaid. The Times has learnt that rival Virgin Megastores, controlled by Sir Richard’s Virgin Group, had attempted to merge with Fopp, injecting a big rescue loan and taking a 10 per cent stake in a new entity.

In a deal negotiated by Virgin’s Simon Douglas, Virgin would have kept the Fopp brand. A source said: “In the end the numbers just didn’t add up and suppliers to Fopp would not support it.”

Like Fopp, sales at Virgin Megastores have been hit by fierce price competition from supermarket giants such as Tesco and digital music down-load sites.

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It is understood that Virgin Megastores also had a discussion with HMV about a tie-up but it could not agree terms. HMV refused to comment.

Tom Burton and Colin Dempster from Ernst & Young have been appointed joint receivers.

Yesterday Fopp, which was founded by Gordon Montgomery from a single stall in Glasgow 25 years ago, said in a statement: “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. 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.”

Other sources questioned whether the chain was profitable and it is thought that it may have overreached itself with the acquisition of 68 Music Zone stores from the administrator in February.

I shall really miss FOPP. I picked up some amazing things...the soundtracks of rare movies..world cinema. Because in most cases, the 'special ' prices were affordable, one was prepared to try unfamiliar product.
It was a way of life. The stores had a lovely atmosphere and the staff were so helpful and knowledgable about the stock. There was so much innovation in the stock....at reasonable prices. I went regualry just to see what new stock was in..and invariably there was always something 'special'. Visiting FOPP became a way of life.
I shall miss those visits. I am sorry about the staff not being paid. I am sorry for Mr Montgomery. It must have been awful for him. However I am sure that he will reappear again with another brilliant idea. He is an entrepreneur and they never die....

r habermann, london, england

Devastated to hear of Fopps demise, it is a sad day for all dedicated music lovers who are now left at the mercy of bland Supermarket selections and overpriced alternatives. Fopp wasn't just a CD store, it was a culture within itself. Whilst I can appreciate that downloading is preferable to some, it still lacks the imagination and personal recommendations so often afforded by friendly and informative staff. Consumers need to awaken to the fact that we have lost not only a great retailer, but also an art form. Fopps' taste style and judgement will not be replaced easily - if at all. Hats off to Richard Branson who recogised their significance in popular music culture. Support the specialist CD shops before they disappear too.

John, London,

The closure of Fopp is a blow to strike many, and I sympathise with the workers as well as the other shoppers relying upon such a competent store for all their musical or film related needs. I hope that Fopp will reopen, as the need for such a convenient retailer is imminent. Not just for me, not just for the shop's workforce, but for all the people who's lives are directly influenced by such a closure.

Jake Strong Jones, London,

A real shame - Truro store - their range, prices and atmosphere was excellent.

Alan Hobbs , St Austell, Cornwall

This is sad news. In Manchester luckily we do have a nuimber of independant record stores but few seem to have the charm of that place.

My £5 pre order for a cd which looks like it will never be returned seems insignificant now in comparison to the workers there.

This has been handled pretty shockingly though...

Kris Adams, Manchester,

I am totally gutted Fopp has closed. HMV and Virgin just don't offer the same level of choice and the high street landscape for music retailers looks duller than ever with tescos, sainsburys, virgin and HMV being the only choice to buy CDs and Records cos smaller specialist stores are being squeezed out.

H, London,

Very sad - maybe they shouldn't have opened so many branches ! How do we redeem our vouchers ???? S from Sh. Bush.

Shellagh Gallup, London, UK

apparently we (ex Fopp staff) are to receive a letter any day now regaring our wages and i dont think it will be good news. something about having to go to a tribunal. one of the most amazing things is that i received a wageslip yesterday with a bonus in it! thats the first bonus ive had as fopp staff!! dont know where the stocktake overtime has gone tho.

R, MCR,

You can claim unpaid wages, unsure about holidays, from either whatever takes over FOPP, or failing that, I'm sure you can reclaim from the government.
I assume something will be posted to you, I wouldnt expect it anytime soon though.

Dominic, Manchester, UK

Can I spend my FOPP vouchers in any other store or claim a refund?

Kevin Bunting, Rugby,

anybody have any help for me as to where i have to go to get my wages

thanks

jodie mcdermott, abingdon,

anybody have any help for me as to where i have to go to get my wages

thanks

jodie mcdermott, abingdon,

Regarding Fopp's crash - what are Ernst & Young arrangements for the loyal staff who are out of pocket being owed at least one month's wages, with holiday pay and notice to be taken into account.

It seems very hard to not be able to pay your rent, feed your kids or tax your car.

Urgent action should be taken to ensure that the money due is paid without delay.

georgie sharland, Burton Bradstock, Dorset

Fopp was the best music shop in the country by a mile. I am totally gutted!

Phil, Shrewsbury, Shropshire

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