Music retailer rebuffs administration rumours
Music retailer Fopp closed 50 stores for an extraordinary stock-take on Friday, a week after it told publishers to stop supplying new books and replenishments.

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

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

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.