Jobs at risk as Jessops boss mulls rescue plan
The owner of struggling camera retailer Jessops, Dragons Den star Peter Jones, is preparing to appoint administrators in a bid to rescue the firm, in a move that could lead to store closures and rent cuts.
JR Prop Limited, the manager of the retailer’s leasehold property estate, has filed a notice of intention to appoint restructuring specialist Resolve as administrator, Sky News reported.
The decision means Jessops’ 46 stores could be threatened with closures over the coming months in the latest blow to the beleaguered UK high street, which has seen a string of major retailers shut shops in recent years.
Store managers were briefed on the restructuring plans this morning.
Jones, who bought the retailer six years ago, decided insolvency proceedings would be the best method of streamlining Jessops’ operations to ensure the camera chain’s survival, the broadcaster said, citing sources.
The businessman is reportedly planning to seek a company voluntary arrangement (CVA) restructuring plan, which is expected to spark store closures and rent cuts.
The company employs about 500 people, and it was not clear how many jobs were at risk from the restructuring plan.
Ruth Griffin, retail director at law firm Gowling WLG, said: “”While disappointing in terms of brand heritage, this follows a similar pattern to other recent examples: CVA being used to restructure and redirect in light of Jessops failing to keep up with the need to provide a diversified, experience-based offering to encourage footfall .
“While efforts to achieve this have been made by the retailer, the demands of modern retail clearly proves it simply wasn’t enough”
Jones, who has become a well-known figure in the UK due to his appearance on the BBC show Dragons’ Den, bought Jessops out of administration in 2013.
Since then, he has reportedly invested heavily in the company, including £5m so far this year, however the company’s losses have increased in recent years.
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