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.
Some 2000 jobs have been put at risk as camera chain Jessops became the first retail casualty of 2013, with store closures "inevitable".
Jessops looks set to become the first high street casualty of 2013 as the retailer is understood to be on the brink of administration.