PwC team appointed to try and salvage Jessops
A TEAM of administrators from PwC in the Midlands has been appointed to try and salvage high street camera retailer Jessops.
Matthew Hammond, of PwC, together with Edward Williams and Rob Hunt have been called in after the Leicester-based photographic equipment seller lapsed into administration.
Jessops has a number of outlets in the West Midlands, including at Temple Row in Birmingham city centre, Solihull, Merry Hill, Wolverhampton and Coventry.
Mr 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.”
He said that in light of these irreconcilable differences the directors had opted to appoint administrators.
“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,” he added.
He added that at present, Jessops was not in a position to honour customer vouchers or accept returned goods.
Jessops had seen turnover for the year to December 31, 2012 reach £236m and its retail network stretches to 192 stores, employing around 2,000 people.
However, administrators said its core marketplace had seen a significant decline in 2012 and forecasts for 2013 indicated this would continue. In addition, the position deteriorated in the run up to Christmas as a result of reducing confidence in UK retail.
The scenario is a sadly familiar one for retailers and the conditions are similar to those which lead to the demise of electrical goods retailer Comet prior to Christmas.
An emergency funding injection and an 11th hour store closure programme which saw the loss of 15 outlets were not enough to the save Jessops. The situation exacerbated by a credit squeeze in the supplier base, added the administrators.
Mr Hammond was one of the team from PwC appointed to try and save Coventry-based Manganese Bronze following its lapse into administration in September.
