Fopp (retailer)

Infobox_Company
company_name = Fopp
company_|
company_type = Subsidiary
foundation = Glasgow (1981)
location = Glasgow, Scotland, UK
locations = 8 stores (2008)
key_people = Gordon Montgomery, Founder (no longer involved)
industry = Retail Record shop
products = CDs, vinyl records, DVDs, books, café
parent = HMV Group plc
revenue =
homepage = http://www.fopp.com

Fopp is a retailer of music, film and books in the United Kingdom, that now trades in eight locations. From its origins as a one-man stall in Glasgow, Scotland, in 1981, it expanded to a chain of over 100 branchescite web
title = Fopp closes down its 105 stores
publisher = BBC News
date = June 29 2007
url = http://news.bbc.co.uk/1/hi/business/6252300.stm] throughout the country in 2007. With the demise of Music Zone, Fopp became the third largest specialist music retailer in the UK in terms of store numbers (after HMV and Virgin Megastores). Shortly after the takeover of rival chain Music Zone, Fopp went into administration in June 2007, resulting in the closure of many of its stores. A small number survived and are operating under the Fopp brand as an independent part of the HMV Group.

The name "Fopp" comes from the title of a song by the Ohio Players.Fact|date=August 2008

Merchandising

Fopp operates a keep-it-simple approach to the pricing of its merchandise with most prices rounded to whole-pound figures. It built a reputation for reasonable prices on new release and non-mainstream catalogue CDs, DVDs and books. The company also had a policy called "suck it and see", whereby any purchase could be returned to the shop within 28 days for a full refund as long as it is as new. Many other CD/DVD retailers will not accept returned goods if security seals or plastic wrapping have been removed.

Instore performances

Fopp built a reputation for free in-store personal appearances from a broad selection of bands and musicians.

Locations

Until 2007 there were 50 Fopp stores and 37 outlets branded as Music Zone throughout England, Scotland and Wales. Fopp can be found in "The Scotsman"'s list of the 250 Biggest Scottish Companies of 2005. [ [http://business.scotsman.com/scotsman250.cfm "Scotsman 250 (2005)"] , Scotsman Online, accessed September 16 2007]

Closure

Having taken over rival chain Music Zone following their fall into administration, Fopp found themselves having cash flow problems. The company cancelled book deliveries in June blaming a change in location of warehouse from Bristol to Stockport (the old Music Zone warehouse).

On June 21st 2007 the company began accepting only cash transactions, stating 'card authorisation' problems as the cause. [Neelam Verjee & Robert Lindsay, [http://business.timesonline.co.uk/tol/business/industry_sectors/retailing/article2000084.ece "Music chain in talks with administrators"] , Times Online, June 28 2007, accessed September 16 2007] . On Friday June 22nd 2007 the company closed all branches for 'stock taking' and said it was in talks with its bank. A week later the company announced a temporary closure in all its outlets and its online venture, and staff were informed that they would not be receiving their monthly pay.

On June 29 2007 they called in receivers after a last-ditch deal that would have allowed Sir Richard Branson a way to devolve himself from the loss making Virgin Megastores without the negative PR of closing down multiple locations, but this deal failed to win support from Virgin's main supplier. The stores were closed, and staff were sent home with their monthly salaries unpaid.

The Fopp online webstore was taken down shortly after and replaced with the following message:

cquotetxt|"It is with great regret that we announce the closure of Fopp.

Our store chain is profitable, well regarded and loved by our loyal customers and staff. However we have failed to gain the necessary support from major stakeholders, suppliers and their credit insurers to generate sufficient working capital to run our expanding business.

We would like to thank staff and customers for their support over the past 25 years.

Any outstanding website orders have now been cancelled and will not be fulfilled or charged."|Fopp closure announcement|June 29 2007

Ernst & Young were appointed as joint administrators of Fopp and Music Zone and issued a press statement detailing stores closed and the numbers of jobs lost at each location. [Ernst & Young Press Statement, [http://www.ey.com/global/Content.nsf/UK/Media_-_07_07_03_DC_-_Fopp_Music_Zone_2007] ]

Reopening

On 31 July 2007, it was announced that HMV would take control of the Fopp brand and its stores in London Covent Garden, Cambridge, Edinburgh Rose Street but not Cockburn Street, Manchester, Nottingham and Glasgow. On 12th February 2008, Bristol Evening Post reported that a further store would open in Bristol (in a former HMV-owned Waterstones store), a city in which three Fopp stores had traded prior to summer 2007.

On 24th August 2007, the Glasgow, Union Street and Edinburgh stores reopened. The Cambridge store reopened on 25th August 2007, and the Manchester store was relaunched on the 27th. After a statement from HMV stating that they were unable to open the Covent Garden branch, they finally gained the landlord's consent to take over the lease and the store opened on 5th October 2007. The remaining 50 stores look unlikely to reopen, and only around 10% of the original 700 employees kept their jobs.

The chain operates independently of HMV preserving the FOPP brand name. Eight stores are now trading with the Fopp name under HMV ownership. [http://beardedmagazine.co.uk/viewarticle.php?id=46 "HMV starts the buy-up of Fopp"] , Bearded Magazine Online, July 31 2007, accessed September 16 2007]

* Cambridge, 37 Sidney Street.
* Edinburgh, 3/15 Rose Street.
* Glasgow, 19 Union Street.
* Glasgow, 358 Byres Road.
* London, 1 Earlham Street / 144 Shaftesbury Avenue (Covent Garden)
* Manchester, 19 Brown Street.
* Nottingham, The Frontage, Queen Street
*Bristol, College Green

Rebranding and Private Purchase

It was also announced that the Leamington Spa store would be reopening as HEAD, a separate store from Fopp, but retaining Fopp's stock and assets [Oliver Williams, [http://www.leamingtoncourier.co.uk/news/The-music-is-back-independent.3369827.jp "The music is back: independent store set to take over from Fopp"] , Leamington Courier, October 12 2007, accessed October 23 2007] . The HEAD store opened on November 1st 2007 and employed some of its predecessor's former employees.

The store intends to host regular performances from local bands, and hopes to allow musicians, artists and authors from Leamington and its surrounding areas to sell their work there.

On Thursday, 6 December 2007 the expanding Electronics and gaming chain 'CEX' opened a store at 18 Midland road, a previous Fopp store. Much of the existing fopp shop-fitting was kept intact and the shop sells Music CDs, DVDs, Phones, Games, Electronics, and Computing.

On Saturday 24th November a new independent music, film and books store named "rise" (taken from a p.i.l song Fact|date=January 2008) opened in an old Fopp store at unit 19 Beechwood Shopping Centre, Cheltenham. The store re-employed former fopp employees and has a music and culture led offer.

In March 2008 a branch of RISE opened in the vacated FOPP space at Warwick Arts Centre, at the University of Warwick in Coventry.

References

External links

*James Dow, [http://thescotsman.scotsman.com/business.cfm?id=26252004 "Fopp has finger firmly on public's musical pulse"] (Profile of Gordon Montgomery), Scotsman Online, January 9 2004, accessed September 16 2007