Financial News
- 14 January 2013, 12:25
Jessops: Camera Chain Closing All Stores
Camera retailer Jessops is clearing stock from its stores after administrators announced it was unable to continue trading.
PricewaterhouseCoopers (PwC), which was appointed to the group on Wednesday, has begun the process of shutting the firm's entire network of 187 stores with the loss of 1,370 jobs
The administrators said further job losses are likely at the group's head office in Leicester.
Jessops is the first high-profile retail casualty of 2013, after suffering from online competition and a boom in camera phones in recent years hitting demand for digital cameras.
Administrator Rob Hunt said PwC had held "extensive discussions" with suppliers, but it was apparent that Jessops could not continue to trade.
He said stock would be collected from the shops and taken to a warehouse, where it would be returned to suppliers.
As a result of the closure of the shops, Mr Hunt added that customers would not be able to return products.
Jessops was forced to call in the administrators this week after talks between the company and its lender and suppliers broke down following a poor Christmas.
Jessops had struggled since 2007, when it underwent a major overhaul with a swathe of store closures.
It 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 camera giant's collapse comes after consumer electricals chain Comet hit the wall last year, sparking more than 6,000 job losses.
There was speculation that suppliers such as Canon were considering injecting cash into Jessops last year to help prop the business up, but no deal materialised.
The group 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.
Mr Hunt added that it was "an extremely sad day for Jessops and its employees".
what do you think?
john
Unbelievable! They have been going over 70 years and all of a sudden they have close. A fine year this is going to be the Xmas decorations are barely back in their hideyholes when we are hit by this! What I would like to know is when will the longawaited GOOD NEWS arrive.
toby wright
another 1,370 unfotunate shirkers then
Vladtheinhaler .
They will now be classed as playstation bums, or plasma screen scroungers, by the tories on here. We never know what is around the corner, so thank god we have some sort of benefit system.
Lorgar Aurelian
Don't be so dramatic. It's no fault of their own and they have put in so they are free to claim whatever benefits they are entitled to. At least they will go and look for a job. It's the ones that don't that annoy.
Mel Heatwole
Hardly 'shirkers' are they? They have been made redundant through no choice of their own. Have some compassion!
Gurdeep Sira
Dont be a plonker!
john
I think Toby was being ironic.
James R McCulloch
When secondhand stock lines were dispensed with a lot of core customers left, never to return they took their custom elsewhere. Jessops were better known for it's secondhand stock lines and many a amateur cut their teeth on nearly new equipment. Long gone now. Bye bye Jessops, a victim of their own making.
blue side
This is again a nail in the high street by online shoppers. Retailers overheads are making them uncompetitive. Nice day with this and Honda thats at least 2000 jobs gone
Lorgar Aurelian
Thing is Blue, shopping online is a much better experience. When you don't have to queue or put up with "have a nice day" it's a no-brainer. Sad but true.
krafty81
On line shopping is a pain in the rear. If it doesn't work, fit, wrong item sent etc. you then have to send it back usually via the post office. If your lucky you might get free posting back. If not you get ripped off by royal mails expensive prices to send the item back at your expense.
davenlesley
Blue side. I think you are right. Peoples shopping habits have changed dramatically and high street stores are reaping the consequences
Nick Eaton
touble is people dont have time as the comoanies want them to work late and weekends and holidays so the only time they have to shop is on line as it dont shut
Name witheld
This comment has been removed for violations of our Terms and Conditions.
Lorgar Aurelian
Tories not buying enough cameras is the problem then?
Michael Hawkins
Bryan I was not aware that the Tories were responsible for internet shopping and the Digital cameras If they have done that they will get my vote next time
SagePhotoWorld
Jessops was bad from bottom to top. The staff were rude and always tried to pull a fast one on the unsuspecting. Karma's bitten them in the rear. A lot of the smaller local camera shops are now breathing collective sighs of relief. Mind, Jessops killed off a lot of profitable smaller local camera shops too.
Chris Carr
I agree. I have visited a number of Jessops stores and found the service to be rude and indifferent. The products are not competitively priced. I wold much rather support the one man local shop where someone will talk to you sensibly about you needs and not look down their nose at you because you aen't a geek.
davenlesley
Lads. I don't dispute what you say and have had experience of poor service from Jessops on line store myself. But there is no getting away from it 1370 people who had jobs on Friday won't have then come Monday morning and that is not something to celebrate.
bjnk
Very sad the loss of these jobs and demise of yet another long standing company. The change in management style to target driven sales, increased prices, and expansion to too many outlets(greed) instead of maintaining and expanding their core products as technology changed but keeping their well established image of qood quality and customer service.
Katie Kidd
Awwwwwwwww what a shame.
Anthony Smith
Never heard of them
Raymond Castle
Just before christmas our Jessops opened up a nice new store in a, reasonably, new shopping precinct. I can't begin to imagine how much it all cost what with brand new stock, at least 6 new shop workers, decorating of shop, and rent of same. Surely somebody in the loop new what was around the corner and yet they still did it!
Nick Eaton
Yes I bet they did like the investors who closed down the Homeform group and made many a homeowner lose money for their kitchens & bathrooms (dolphin & Moben) They new what was going to happen ages befor and were sending their top sales people to Germany to learn about the "new products"
mrtein
In spite of all the reasons in the media they went cos they had too much debt. And they couldnt repay it. Basic business. Nothing to do with cameras
Paul Walsh
I thought their business was cameras! Debt came from borrowing to buy at a discounted price, then not being able to sell as they were still too expensive! Basic business model for failure, bad management, bad decisions! Everything to do with cameras!
Brian Holmes
The simple reason is the cameraphone. I am an amateur photographer who owns a "proper" camera with extra lenses etc. and I have to say that I am often astounded by the quality of photos from cameraphones, especially the iphone. Digital SLRs are now a niche market and will remain so no matter what the price.
davenlesley
Desperate news. Another 1370 people who end up as colateral damage when a firm goes to the wall. With on line shopping and more new technology arriving on a daily basis I fear they will not be the last. High overheads and a change in peoples shopping habits will see to that
GillieLouise
Very sad Dave but I could see it coming. Our home technology put paid to these stores.
Martin Beadle
hard working tax payers one day. workshy benefit scroungers the next. hmmmm......
Michael Hawkins
Possibly if they had been hard working the company would not have gone bust ?
bjnk
Michael, well you've not disappointed us with that comment.
lol mcr
Wow Michael, a new low
Nick Eaton
why blame the workers Michael, It was more than likely the upper managment that caused it to crash. You allways find someone at the bottom to blame .If there aint no one out there to sell to who then do you sell to ?we are all to blame by shopping on the Web looking for the cheapest deal .What goes around comes around catch 22 me thinkls
stewgwyn
Michael, sales assistants have no control over the global economy, overheads and boardroom decisions, not to mention the advent of hi-spec camera phones.
denisparsons
Who to blame-Microsoft,Apple,cameras are bulky items ther're not required anymore,except by photographers.
chrishearn350
Gone in a flash !
Martin Peacock
A sad loss to the high street. Condolences to those who have lost their livelihood.
Fred Spoons
Oh God; not another clearance sale?
Vladtheinhaler .
5:10pm on 11/1/2013
Another one bites the dust. Just another victim of the bankers... did i say bankers , i meant w........ Tea time.
Alex Thompson
9:22pm on 11/1/2013
How are they a victim of bankers? They are victims of better and better camera phones and online shopping.
Colin Tiso
7:06am on 12/1/2013
I went to jessops to buy a nice digital camera i was pounced on by the staff saying this and this so i walked out i bought the camera on amazon for £50 cheaper than jessops
davenlesley
1:53pm on 12/1/2013
Colin. Simple economics wins every time