Jessops calls in administrators
Another high street retailer hits turbulence
By Gaurav Sharma | CFO UK | Published 15:53, 09 January 13
UK high street camera and specialist photographic equipment retailer Jessops has gone into administration, CFOWorld has learnt.
A source at PricewaterhouseCoopers (PwC) has confirmed that the global advisory firm has been appointed as the administrator.
Despite inking a debt equity swap with HSBC to free up additional funding in 2009, Jessops was unable to generate an “effective” turnaround, according to the source.
It now appears that the retailer only managed to put off administration for a few years.
In an official statement, PwC said, "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 on-going discussions."
PwC has not ruled out store closures saying it was "inevitable."
Jessops, founded in Leicester in 1935, operates 200 stores in the UK with nearly 2000 employees. The company was unavailable for comment when approached by CFOWorld.
The news spreads further gloom on the UK high street, coming close on the heels of electrical retailer Comet’s demise with a number of retail brands biting the dust in recent years.
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