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Jessops enters administration

Photography retailer Jessops has gone into administration with ‘inevitable’ store closures predicted.

The firm filed an application for administration today (Wednesday January 9) at the High Court.

It has nearly 200 stores and employs some 2,000 staff - though it was not clear how many staff could be affected at the Crawley store in The Martlets.

Administrators PricewaterhouseCoopers (PwC) said business had suffered a significant decline in 2012 and deteriorated in the run-up to Christmas.

It had also been affected by a credit squeeze from suppliers.

A PwC spokesman said that, at present, Jessops was not in a position to honour customer vouchers or to accept returned goods.

A shift to digital photograpghy, online picture sharing and camera phones has caused problems for Jessops.

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

 

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