Jessops Slashes Jobs And Ignores Gift Vouchers
Troubled high street photography retailer Jessops has gone into administration and will no longer accept gift vouchers or returned goods, it has been confirmed.
Sky sources earlier revealed that an application for administration was filed on Wednesday morning at the High Court, leaving some 2,000 jobs at risk.
PwC administrator Rob Hunt 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."
The administrators† added: "At present Jessops is not in a position to honour customer vouchers or to accept returned goods."
The demise of the decades-old chain would be the first high street casualty of 2013, and comes soon after consumer electricals chain Comet hit the wall, sparking more than 6,000 job losses.
Jessops has struggled amid the digital photo revolution and the retail shift to online trading and camera phones.
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 £34m 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.
Last year it also lost two key executives, chairman David Adams and chief executive Trevor Moore - who joined HMV.
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.
The company's website was still active on Wednesday afternoon and its helplines were still in operation.
what do you think?
to be honest they were ALWAYS overpriced so market forces have finally closed them down.
Not always - during the 80's i used a lot of 35mm slide film and Jessops were always the cheapest but of cource that was before the days of the internet
Purchased a new Nikon from them in November and they were the cheapest. There were cheaper but these were not UK models, so i went to Jesspos. Another retailer in trouble, who else (there will be some more yet)
I found jessops cheap, last year I bought a sony alfa dlsr lens and it was £40 cheaper than amazon, quality products with great staff.
Jesspos staff were always snooty, the stuff overpriced and the service lousy. Good riddance to bad rubbish.
Yep, ALWAYS overpriced & not by a small amount. Staff attitude wasn't always what it should be either.
one by one they collapse europe is over my friends
More sad news for retail.Hope it works out for them
Another victim of online sales. Now that remaining High Street retailers are practically the Walking Dead and the Government is losing it's enormous revenue from them, I think it is only a very short time before we see online sales being hit by a new tax.
online retail is not the problem its sky high high st rates,nothing stops any shop or company advertising or selling online at a lower price,many of the big names hide under online names to sell stuff,,so to help a lot of small buissness and town shops slash the rates,but that will mean revenue cut
John,it's a combination of both
Online shopping maybe cheaper for now but once all the high st. retailers have been killed off then watch the prices soar.
Correct Nigel. it happened with small grocery shops when Tesco et al came along
How can they not honour vouchers when they have already been paid for?
Because they aint got the money and voucher holders are way down the creditors list
They have the stock though?
You cant tell me that they didnt realise they would have to go into liquidation in trhe new year. Yet they continued to sell gift vouchers in the lead up to christmas knowing they were selling worthless pieces of paper. I'd call that fraud personally, wouldnt you?
Yep. Obtaining monies by deception?
Its a form of stealing as i see it William
That's Capitalism for you always a loophole.
Its sad to see yet another high street shop posibly disapear and yet more jobs lost. I would say its down to online sales and inpart down to other companys like say currys / tesco / asda that have more power and influence to make bulk buy deals that lower the cost price enabeling them to make better retail deals to undercut there rivals but still the main reason is internet buying but this realy is a downward self destructive spiral with a nasty crash at the end because the more people spend online to try and save every pound posable the more shops loose out and the more will close resulting in more unemployed and less money to spend online and a greater burden on the JSA system and with retail jobs acounting for a very large portion of the the UK employment percentage. Also how can they refuse to honor vouchers and is that even leagle because these are simply cash that has been payed in advance and is basicly still owned by the person with the voucher so by refusing to honor them they are denieing people money / products that leagilly belong to them.
I'll be sad to see this go, having not long taken up photography. They aren't as cheap as Amazon for lenses, but when struggling to find one in stock online anywhere last year I did go and buy one in store. I wouldn't say they've struggled because of camera phones. Photographers still use actual cameras. It's the shift to digital (no longer needing to buy film or get it developed from a specialist retailer) and online retailers offering much cheaper deals.
More on this story as it develops.
Ha, nice one.
Am sure all the people being made redundant will appreciate that one
If I can figure out how to get insolvencies onto a board or app game, I`ll clean up.
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Got my camera there last year cheaper than Amazon,tried to sell me 5 years insurance good job I said no.
Trevor Moore started at Currys, went to Jessops and left there for HMV. Notice anything about those three companies?..
Yes Ben, there's a pattern emerging. He's creaming it off and then doing a runner !
I find it slightly concerning with comments like:- Europe is over my friends. Western policies are to blame yada yada yada. A camera shop has shut for Christ's sake......it's not like the NHS has shut down and there's no doctors or nurses!
That all happens next week
I'm sorry staff are going to be out of a job but Jessops have been overpriced for a long time. Several years since I have bought any items from them. Another retailer bites the dust.
Cynical- they wait till people have bought vouchers for xmas gifts, maximise whatever sales thay can get in January sales and then pull plug. This not honouring voucher business should be looked into by the Govt. Any redress if they were purchased with a credit card ?