Ernst & Young enlisted to assess business
Music retailer Fopp has drafted in administrator Ernst & Young to help save the beleaguered chain.

Tom Burton and Colin Dempster from Ernst & Young have been appointed joint accountants for both Fopp and Music Zone. Burton said: 'We are assessing the financial position of the companies. Once this has been completed we will have a better idea of the future of the businesses.'

In February, Fopp bought 68 Music Zone stores out of administration. However, at the end of last week it closed 31 stores, along with the 50 Fopp stores, sending staff home and putting about 800 jobs at risk.

At the start of last week, the troubled retailer stopped taking orders online and would only accept cash payments in stores. A week ago, Fopp shut all of its stores for a stocktake. At the time, chairman and major shareholder Gordon Montgomery admitted that sales had been falling, but denied the chain was going into administration.

Fopp's acquisition of the Music Zone stores and rising interest rates are believed to have put financial pressure on the company.

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