Jessops collapses into administration
The retailer has faced increasing competition from online retailers in recent years and has also suffered due to the growing use of smartphone cameras.
The appointed administrators, PricewaterhouseCoopers, admitted that it was "inevitable" that some of the 192 Jessops stores would close.
The administrators said that although 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. In addition, the retailer’s position had deteriorated in the run up to Christmas.
Despite additional funding being made available, Jessops failed to generated the amount of profits it planned and also faced a credit squeeze in the supplier base, PwC added.
Rob Hunt, joint administrator and partner, PwC said yesterday: "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."
PwC added that at present Jessops was not in a position to honour customer vouchers or accept returned goods.
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