Recovery experts from Ernst & Young have been called into discuss future options for music chain Fopp, following reports that the company is on the verge of collapsing, The Scotsman reported.

Fopp, which sprung out of a single market stall in Glasgow, is believed to be trading on a cash-only basis, and been doing so for more than a week, while its online sales have also fallen.

Reports suggest company bankers, Bank of Scotland, may withdraw its services.

Last weekend Fopp denied it was in administration, claiming it was in ‘genuine and lengthy negotiation’ with the bank.

But last week it closed its entire chain of 50 high street stores including its flagship shop on London's Tottenham Court Road for a day of ‘stocktaking’.

Further reading:

Two-thirds of Music Zone stores sold by Deloitte