Jessops bites the dust

D

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This happened years ago. They went into administration, cut down most of their shops, and went mostly online with a much reduced product range(All lower end stuff that sells to consumers, no pro gear). I think they might have had more of a business model going the other way and focus on the high end, cameras are hard to justify when we have 40mp smartphones(Yes I know they aren't as good, but good enough)
 
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Mar 25, 2011
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It sounds like they are not going away, but another size reduction and reorganization will happen. I thought that we'd see a lot of camera manufacturers dropping 2 years ago, but most seem to be struggling along. With China getting into the market more and more, I just can't see all of the Camera Manufacturers hanging on.
 
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Oh dear, Jessops is going into administration and we lose more shops.
Unfortunately, the BBC's level of journalism/headline writing is nothing to what it used to be. It sounds like Jessops's is going into a CVA (Company Voluntary Arrangement) , almost certainly as a way to cram down landlord liabilities - or at least future rents - while the shareholder(s) still retains ownership.

The BBC is using lazy reporting and calling it an "administration", though that is technically a different insolvency process. (While it is true that a corporate can first enter administration, and then "exit" via a CVA, these days there is sufficient legal protection while pulling together a CVA to not need bother with the extra expense of a preliminary Administration). Once upon a time the BBC employed financial journalists who knew about business and legal processes - now... not so much.. and the 'gist of the facts' is good enough :(

Like so many high street retailers, it finds itself with a large number of rented shops, and now unable to meet the previously agreed lease rentals - if you want to be cynical, they simply now want to change the agreements they previously entered into, if you're more forgiving, then they are suffering due to a change in retailing (i.e. internet operations) and need to re-adjust one of their biggest costs through no fault of their own...

Since it is not the first time Peter Jones has used a CVA to reduce the landlord costs on one of his "investments", I'm more inclined to go with the first view.

Anyway - if it helps save the jobs of those still employed by Jessops, then I hope it is successful: they have had some really enthusiastic sales men down the years, who have helped a lot of people into photography.
 
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AlanF

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Unfortunately, the BBC's level of journalism/headline writing is nothing to what it used to be. It sounds like Jessops's is going into a CVA (Creditors Voluntary Arrangement) , almost certainly as a way to cram down landlord liabilities - or at least future rents - while the shareholder(s) still retains ownership.

The BBC is using lazy reporting and calling it an "administration", though that is technically a different insolvency process. (While it is true that a corporate can first enter administration, and then "exit" via a CVA, these days there is sufficient legal protection while pulling together a CVA to not need bother with the extra expense of a preliminary Administration). Once upon a time the BBC employed financial journalists who knew about business and legal processes - now... not so much.. and the 'gist of the facts' is good enough :(

Like so many high street retailers, it finds itself with a large number of rented shops, and now unable to meet the previously agreed lease rentals - if you want to be cynical, they simply now want to change the agreements they previously entered into, if you're more forgiving, then they are suffering due to a change in retailing (i.e. internet operations) and need to re-adjust one of their biggest costs through no fault of their own...

Since it is not the first time Peter Jones has used a CVA to reduce the landlord costs on one of his "investments", I'm more inclined to go with the first view.

Anyway - if it helps save the jobs of those still employed by Jessops, then I hope it is successful: they have had some really enthusiastic sales men down the years, who have helped a lot of people into photography.
Let's hope they survive.
 
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