Partly Cloudy

Partly Cloudy

max temp: 14°C

min temp: 9°C

Search

UK: 2,000 jobs at risk as camera chain Jessops enters administration

14:23 09 January 2013

Jessops

Jessops

AROUND 2,000 jobs at camera chain Jessops are under threat after the group collapsed into administration today, with a warning that store closures are “inevitable”.

PricewaterhouseCoopers (PwC) has been appointed to the group, which is Britain’s only specialist nationwide camera retailer, with nearly 200 stores, including branches in Ipswich Bury St Edmunds, Colchester, Lowestoft, Chelmsford, Cambridge and Norwich.

It marks the first high-profile retail collapse of 2013 and comes soon after consumer electricals chain Comet hit the wall, sparking more than 6,000 job losses.

Jessops, which has its headquarters in Leicester, has suffered in recent years from online competition and the boom in camera phones, which has hit demand for digital cameras.

It underwent a major overhaul in 2007 and a swathe of store closures, but came close to collapse two years later before being rescued by its main lender HSBC in a controversial debt-for-equity swap that saw it taken off the stock market.

The bank took a 50% stake in the business in return for writing off £34 million of loans.

There was speculation last year that suppliers such as Canon were considering injecting cash into Jessops to help prop the business up, but no deal materialised.

Rob Hunt, joint administrator and a partner at PwC said today: “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.”

“Finally, at present Jessops is not in a position to honour customer vouchers or to accept returned goods,” he added.

Jessops last year also suffered the loss of its chief executive Trevor Moore, who left to head up HMV, as well as its chairman David Adams.

Martyn Everett was then appointed as chairman and Neil Old was promoted to lead the business as chief operating officer.

The firm began life in 1935 when Frank Jessop opened his first shop in Leicester.

0 comments

Suffolk Constabulary's headquarters in Martlesham Heath, where the 999 control room is based.   Picture: SU ANDERSON

People seeking emergency help abandoned more 999 calls to police in Suffolk than anywhere else in the country.

Silhouette of a domestic abuse victim. Picture: Andy Abbott

A project pledging to give extra support to domestic abuse victims in Suffolk has been awarded hundreds of thousands of pounds in government funding.

Newton Faulkner. Picture: John Alexander Seiffer

The acts that will headline one of Suffolk’s most popular music festivals in its 10th anniversary year have been announced, with singer/songwriter Newton Faulkner topping the bill.

Ipswich Crown Court

A man who kicked and punched his partner following a row about her using a tumble dryer instead of hanging the washing out to dry has been jailed for seven months.

Ipswich Towns Daryl Murphy and Adam Webster, of Norwich City, hang on to each other during last summer's match between the East Anglian rivals.  Picture: Steve Waller

It is one of the most hotly anticipated games of the season for football fans in Suffolk and Norfolk.

The view of Angel Hill from the top of the St Edmundsbury Cathedral tower. Picture: ANDY ABBOTT

A drive to encourage people to help shape the future of Bury St Edmunds is to be launched in the next few days.

Buttermarket Ipswich.

Ipswich has been hailed as a great place to do business after the Buttermarket Centre was sold in a multi-million pound deal even before the final pieces are put into the redevelopment jigsaw.

Most read

Great Days Out

cover

Click here to view
the Great Days Out
supplement

View

Eating Out in the Broads

cover

Click here to view
the Eating Out
supplement

View

Visit the Broads

cover

Click here to view
the Visit the Broads
supplement

View

Most commented

HOT JOBS

Show Job Lists

Newsletter Sign Up

Sign up to the following newsletters:

Sign up to receive our regular email newsletter
MyDate24 MyPhotos24