Stores only accepting cash
Music retailer Fopp has stopped taking orders online and is only accepting cash payments at its stores.

Fopp posted on its web site: 'Due to circumstances beyond our control we cannot currently take orders online. Sorry for any inconvenience caused.' A notice on the tills said it was having problems with 'authorisation systems'.

This follows an announcement on Friday that it had closed 50 stores for an extraordinary stock-take, a week after it told publishers to stop supplying new books and replenishments.

Fopp denied that it might be considering going into administration, although chairman Gordon Montgomery admitted that sales have been falling.

In a statement released over the weekend, the retailer said: 'Fopp continues genuine and lengthy negotiations with its bank and is not in administration. Stock-taking is complete, stores reopened on Saturday 23 and will continue to remain open.'

Fopp trades from 50 stores and it is thought that its move in February to buy 67 stores from failed retailer Music Zone, as well as rising interest rates, has put financial pressure on the company.

In its accounts for the year to April 2006, Fopp posted a£184,000 profit on sales of£40 million. It made a loss in the previous year.