The Telegraph reports that Fopp, the third largest high street music retailer, has launched a strategic review with its bankers as it struggles to cope with tough market conditions, according to sources close to the company. The company closed its 50 stores on Friday for an extra-ordinary stock take that rang alarm bells with landlords and advisers. The move came just a week after the company told publishers to halt book supplies on both new orders and range replenishments.

Gordon Montgomery, the chairman and a major shareholder, denied the company is considering calling in the administrators although he admitted there are problems with falling sales. "We are experiencing difficulties. However, I can categorically state we will not go into administration." The revelation comes barely a week after The Bookseller broke the news that the chain had told publishers to stop supplying it with books.