Jessops owner plans to call in administrators
The High Street camera chain, owned by Dragons Den star Peter Jones, has seen big rent rises.
www.bbc.co.uk
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.Oh dear, Jessops is going into administration and we lose more shops.Jessops owner plans to call in administrators
The High Street camera chain, owned by Dragons Den star Peter Jones, has seen big rent rises.www.bbc.co.uk
Let's hope they survive.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.