Fopp, the U.K.'s leading independent specialist music retailer, has gone bust.

The company issued a statement today (June 29) confirming industry speculation that it was going bankrupt after 25 years in the business.

"It is with great regret that we announce the closure of Fopp," the statement said. "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."

The announcement comes five days after the company stopped taking credit cards at its chain of nearly 50 stores, ceased stocking new releases, and halted accepting orders online. The retailer subsequently entered talks with the company's financial supporter, the Bank of Scotland.

Industry observers had speculated that Fopp overstretched itself in February by buying bankrupted rival 67-store chain Music Zone for an undisclosed sum.

A spokesman could not be reached for comment.

Fopp chairman Gordon Montgomery founded the chain in Glasgow, Scotland in 1981. The company accounted for 1% of U.K. album expenditure in 2005, according to labels body the BPI.