Jessops heads into administration

PostJessops heads into administration by KK » Wed Jan 09, 2013 6:02 pm

BBC News wrote: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."

Jessops becomes the first High Street casualty of 2013, following a raft of firms falling into administration in 2012 including Comet, Clinton Cards, JJB Sports and Game Group.

http://www.bbc.co.uk/news/business-20958659

People aren't buying standard cameras as much either, as mobile phones have made them redundant.

Jessops was very expensive and couldn't match online retailers.

My GF was assistant manager there for about 3 years. Took a paycut to get out. Horrible place to work, but story-fodder when the local paedo comes in with his crotchless trousers attempting to print pictures of little boys in the park and matadors. He also once lifted up his eyelid, pulled a large piece of pus from a stye and ate it at the counter.

Something Fishy

It's looking like there won't be much left on the high street by the time the carnage of the depression ends.

oh well, nowhere left for people to spend the money they don't have anymore, you need the latter to do the former after all.

High street was always gooseberry fool tbh. I much prefer the intertube experience.

Something Fishy wrote:It's looking like there won't be much left on the high street by the time the carnage of the depression ends.

oh well, nowhere left for people to spend the money they don't have anymore, you need the latter to do the former after all.

Clothes shops, coffee shops, betting shops and charity shops. That's what most towns seem to be made up of these days. Truly depressing places.

No surprise Jessops has gone, it was always going to struggle.

Not surprised. They were insanely expensive. Went into Jessops a few years ago and saw a camera that my mum was after. Went two doors down to an independent camera shop and the same camera was £150 cheaper :fp:

I'll be there for the discounted EF 70-200mm f/2.8L IS II USM

I have no chance.

Thing is its not just the impact of the internet. Jessops have always been expensive compared to other retailers.

NickSCFC

Not many people want standalone cameras or print photos these days, this would've happened regardless of the recession.

Evolution marches on, the scythe is remorseless

Something Fishy

Lotus wrote:
Something Fishy wrote:It's looking like there won't be much left on the high street by the time the carnage of the depression ends.

oh well, nowhere left for people to spend the money they don't have anymore, you need the latter to do the former after all.

Clothes shops, coffee shops, betting shops and charity shops. That's what most towns seem to be made up of these days. Truly depressing places.

No surprise Jessops has gone, it was always going to struggle.

In truro even the betting shop went under. Tells you times are bad.

Sad to see but it's not a surprise when you can buy cheaper products on Amazon

Worked there before, horrible place to work.

Good. Place was a clusterfuck and way overpriced.

$ilva $hadow wrote:Worked there before, horrible place to work.

Too expensive, but a decent place to have a look at things before going and buying them online.

Actually, I bought my camera from there. It was genuinely the cheapest place to get it, at the time.

Just remembered, it was because they'd give me a VAT receipt.

Not at all surprised either. Phones have decent enough cameras these days so a lot less people will feel the need to buy a standalone camera plus its always cheaper on amazon etc

Lotus wrote:
Something Fishy wrote:It's looking like there won't be much left on the high street by the time the carnage of the depression ends.

oh well, nowhere left for people to spend the money they don't have anymore, you need the latter to do the former after all.

Clothes shops, coffee shops, betting shops and charity shops. That's what most towns seem to be made up of these days. Truly depressing places.

No surprise Jessops has gone, it was always going to struggle.

You forgot takeaways. They'll outnumber other shops by a fair whack.

Online retailers are going to have to start subsidising retail stores, no two ways about it.

TheTurnipKing wrote:Online retailers are going to have to start subsidising retail stores, no two ways about it.

Why? It's not the online retailers fault that the high street retailers are for the most part entrenched in old wasteful practices.

Jessops heads into administration

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