Some 2000 jobs have been put at risk as camera chain Jessops became the first retail casualty of 2013, with store closures "inevitable".Read the full story ›
Consumer rights group Which? said customers need to be aware of their rights as it emerged that people with Jessops gift vouchers may not be able to use them. A spokesman for Which? gave this advice:
- Write to the administrators (Price Waterhouse Cooper) with proof of your vouchers. There is no guarantee that you will get the full value back, and a claim could take some time to process.
- If you have bought an extended warranty, check the small print carefully. Often it is provided by a third party in which case you shouldn't be affected.
- If you've bought items costing more than £100 on a credit card and the supplier goes bust, you can claim a refund by writing to the credit company.
[I'm] very sorry to hear that. My ex-husband and my son have spent a lot of money in Jessops over the years. So have I! But as others have said, online sales have brought a more reasonable price when people are strapped for cash.
It doesn't surprise me. My local Jessops is always empty and as a keen amateur photographer I noticed some of their equipment could easily be bought elsewhere sometimes at a third of the price ...
In our small town, we have so many charity shops, banks, a 99p store, cash loan shops. [It's] pathetic really.
A statement from Jessops' administrators Price Waterhouse Cooper describes the reasons for the chain's financial troubles:
Its core marketplace has seen a significant decline in 2012 and forecasts for 2013 indicate that this decline would continue.
In addition, the position deteriorated in the run up to Christmas as a result of reducing confidence in UK retail.
Despite additional funding being made available to the company by the funders, this has meant that Jessops has not generated the profits it had planned with a consequent impact on its funding needs.
This was exacerbated by a credit squeeze in the supplier base.
A representative from Jessops' administrators Price Waterhouse Cooper has released this statement:
Over the last few days the directors, funders and key suppliers have been in discussions as regards additional consensual financial support for the business. However these discussions have not been successful.
In light of these irreconcilable differences the directors decided to appoint
administrators and we were appointed earlier today.
Our most pressing task is to review the Company's financial position and hold discussions with its principal stakeholders to see if the business can be preserved.
Trading in the stores is hoped to continue today but is critically dependent on these ongoing discussions.
However, in the current economic climate it is inevitable that there will be store closures.
Camera retailer Jessops has been placed into administration, with administrators saying store closures are "inevitable".
- Founded in Leicester, where its headquarters are still located today, in 1935
- Britain's only specialist nationwide camera retailer with 192 stores
- Employs about 2,000 people
- Underwent a major overhaul in 2007 with many stores closing
- Almost collapsed in 2009 but was rescued by its main lender HSBC in a controversial deal that saw the bank taking 50% of the business in return for writing off their loans.