700 jobs lost at CD retailer Fopp

Fopp and Music Zone stores reduced to just 100 employers by E&Y as it looks for a buyer for the business

Written by Kevin Reed

Accountancy Age, 03 Jul 2007

Some 700 jobs have been lost at music stores Fopp and Music Zone.

Fopp entered into receivership and its Music Zone stores entered administration - both on Friday.

There are only 100 employees left at the stores, who have been retained as options for selling the business continue to be sought.

'It is unfortunate that we have had to make these redundancies but we are not in a position to re-open the stores until we have the agreement of suppliers who control the licenses to sell stock,' said joint administrator and Ernst & Young partner Colin Dempster.

'We would urge anyone with a genuine interest in taking on stores as going concerns to contact us immediately. In the meantime, we wanted to ensure that employees have the opportunity to claim their statutory entitlements through the redundancy fund as soon as possible,' he added.

Contact details are available on Ernst & Young's website .