• Home >
  • News
  •  > Jessops Camera Chain Suffering Financial Decline

Jessops Camera Chain Suffering Financial Decline

From the BBC:
 
Troubled High Street camera retailer Jessops has gone into administration, with PricewaterhouseCoopers (PwC) appointed as the administrator.
 
In recent years, it has been hit by increasing competition from supermarkets and internet retailers.
 
Jessops, which was founded in Leicester in 1935, has 192 stores in the UK and employs about 2,000 staff.
 
The administrators said that it was "inevitable" that some stores would have to close.
 
PwC said that while Jessops was a well-known brand with a strong reputation for service, its core marketplace had seen a significant decline in 2012, which was forecast to continue in 2013.
 
Despite additional funding being made available, Jessops had not generated the profits it had planned, PwC added.
 
In 2009, Jessops managed to avoid administration by agreeing a debt for equity swap with its lender HSBC.
 
'Yet another blow'
 
Rob Hunt, joint administrator and partner at PwC, said: "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."
 
PwC added that at present Jessops would not honour customer vouchers or accept returned goods.
 
Julie Palmer, a partner at business recovery group Begbies Traynor, said Jessops' administration was "yet another blow" for the UK High Street and showed that January was a high risk month for retailers.
 
"With substantial cash outflows on the 25 December quarterly rent day combining with fierce pricing competition during the January sales, it puts significant pressure on finances.
 
"The administration of such a household name can only serve to damage consumer confidence further in the months ahead." (thanks Dean)
Posted: 1/9/2013 10:28:36 AM CT   Posted By: Sean
comments powered by Disqus

Please support this site and my family by using the links provided throughout the site to make your purchases
Using this link to make your B&H purchase supports this site and my family
Using this link to make your purchase supports this site and my family
Using this link to make your purchase supports this site and my family
Using this link to place your Beach Camera order supports this site.
Using this link to place your Think Tank Photo order supports this site. Should your order total more than $50.00, Think Tank Photo will send you a free gift with your order if this link is used
Using this link to place your MindShift Gear order supports this site.
Canon Refurbished:
(Like new gear at nicely reduced prices)
B&H Photo
Adorama
Canon Store: DSLRs | Lenses | Flashes
 
Fund New Gear by Selling the Used:
Sell Used Gear at B&H Photo (learn more)
Sell Used Gear at Amazon.com
Support this site by ordering a Lensbaby!

Help | Contact Us | Support Us | Terms of Use | © 2003-2014 The Digital Picture, LLC | Bryan CarnathanPowered By Christ!