HIGH street photographic retailer Jessops has gone into administration.
PricewaterhouseCoopers (PwC) has been appointed as the administrators of the high street chain, which sells photographic equipment and has a growing online business.
Jessops has 192 stores across the UK and employs around 2000 people. The administration has put a jobs at risk at the Church Street branch in Rugby.
Administrators said that during 2012 turnover was £236m.
However its core marketplace has seen a significant decline in 2012 and forecasts for 2013 indicate that this decline would continue.
In addition, the position deteriorated in the run up to Christmas as a result of reducing confidence in UK retail.
Despite additional funding being made available to the company by the funders, this has meant that Jessops has not generated the profits it had planned with a consequent impact on its funding needs. This was exacerbated by a credit squeeze in the supplier base.
Rob Hunt, joint administrator and partner, PwC 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.”
At present Jessops is not in a position to honour customer vouchers or to accept returned goods.