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| Jessops’ current online storefront |
British photo retailer Jessops is looking for administrators to ‘help salvage the struggling High Street brand,’ according to BBC News.
Serial entrepreneur Peter Jones purchased Jessops from administrators back in 2013 in a joint venture with restructuring company Hilco Capital, after the photo retailer racked up £81M ($ 104M) in debt and closed more than 187 stores. At the time, Jones said in the below interview with BBC News that Jessops would reopen ’30-40′ of its stores with the intention of charging the same price in stores as it did online.
After not initially reaching Jones’ £80M revenue goal during his first year of ownership (2015), Jessops ended up showing revenue of £80.3M and £95M in 2016 and 2017, respectively. However, recent trade conditions have negatively impacted revenue and as a result the company is reportedly looking for a company voluntary agreement (CVA) with landlords and lenders of the chain’s 46 stores, leased under Jessop’s retail property firm, JR Prop Limited. As explained by BBC News, CVA ‘is an insolvency process that allows a business to reach an agreement with its creditors to pay off all or part of its debts [over an agreed period of time] and is often used as an opportunity to renegotiate rents.’
Dragons’ Den star Peter Jones is preparing to call in administrators as he tries to salvage a future for @Jessops. https://t.co/jitAn9HZyG
— Sky News (@SkyNews) October 16, 2019
Sky News has reported store closures and rent cuts are expected, but sources close to Jessops say Jones is still optimistic about the presence of its brick-and-mortar locations, according to BBC News.
Sources close to Jones have also told Sky News that ‘Mr Jones had decided that placing JR Prop into insolvency proceedings would provide the most effective means of streamlining Jessops’ operations to ensure their survival.’
Jessops was established by Frank Jessops in Leicester, United Kingdom in 1935. Currently, Jessops’ headquarters are located in Marlow, United Kingdom.
Articles: Digital Photography Review (dpreview.com)