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Reasons for Jessops' financial troubles

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.

– price waterhouse cooper

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PwC: Trading to continue but store closures 'inevitable'

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.

– Rob Hunt, joint administrator and partner, price waterhouse cooper

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Jessops employs around 2,000 people across UK

  • 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.

Jessops 'set to go into administration'

by - Former Business Editor

Jessops photo store sounds like it is going to be the first victim of the high street in 2013 - Retail Week says it is about to go into administration.

Jessops
The Jessops photographic shop in New Oxford Street, central London. Credit: John Stillwell/PA Archive

The former boss, who had been credited with turning things around, left Jessops not long ago to try and save HMV.

PWC are likely to be formally appointed Jessops' administrators by the end of play today.

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