Fopp took over 67 stores from failed competitor Music Zone in February, which is believed to have put pressure on the company’s finances.
Last Friday, Fopp appointed Ernst & Young as its administrator, and it immediately sent staff home as it sought potential buyers to take on individual stores.
Joint administrator Tom Burton said: “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 the suppliers who control the licenses to sell stock.”
Ernst & Young said it would retain store managers while it “assessed the prospects”.
It follows news last week that rival HMV declared a £50m dip in profits for the year ending in April, amid difficult market conditions and growing competition.