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Jessops owner plans to call in administrators | Jessops owner plans to call in administrators |
(32 minutes later) | |
Camera chain Jessops plans to call in administrators as its owner, Dragons Den star Peter Jones, tries to salvage the struggling High Street brand. | Camera chain Jessops plans to call in administrators as its owner, Dragons Den star Peter Jones, tries to salvage the struggling High Street brand. |
Mr Jones bought the chain from administrators in 2013 after it collapsed under £81m of debt. | Mr Jones bought the chain from administrators in 2013 after it collapsed under £81m of debt. |
But since then, the firm, which has 46 shops, has not made a single profit and losses have mounted in recent years. | But since then, the firm, which has 46 shops, has not made a single profit and losses have mounted in recent years. |
Last year alone, the business, which employs 500 people, reported a £13m loss as rent costs increased to £4.7m. | Last year alone, the business, which employs 500 people, reported a £13m loss as rent costs increased to £4.7m. |
Lease charges, which include rent on stores, increased from £4.4m in 2017. | Lease charges, which include rent on stores, increased from £4.4m in 2017. |
Now Mr Jones is reportedly planning to seek a rescue deal, known as a company voluntary agreement (CVA) with its landlords and lenders. This is an insolvency process that allows a business to reach an agreement with its creditors to pay off all or part of its debts. | Now Mr Jones is reportedly planning to seek a rescue deal, known as a company voluntary agreement (CVA) with its landlords and lenders. This is an insolvency process that allows a business to reach an agreement with its creditors to pay off all or part of its debts. |
Sky News said the CVA was expected to lead to store closures and rent cuts. | Sky News said the CVA was expected to lead to store closures and rent cuts. |
But sources close to Jessops said Mr Jones still saw a future in the business and would not say how many of the chain's stores were at risk of closure. | But sources close to Jessops said Mr Jones still saw a future in the business and would not say how many of the chain's stores were at risk of closure. |
Mr Jones bought Jessops in March 2013, just months after it had gone into administration and closed its 187 stores. | Mr Jones bought Jessops in March 2013, just months after it had gone into administration and closed its 187 stores. |
At the time, he said the chain would reopen some of its High Street shops to give it between 30 and 40 stores across the country. | At the time, he said the chain would reopen some of its High Street shops to give it between 30 and 40 stores across the country. |
He told the BBC that he wanted the price charged in store to be the same as online. | He told the BBC that he wanted the price charged in store to be the same as online. |
"The main reason why I think it's going to be successful is that it's going to be a lower overhead base, lower cost," he said. | "The main reason why I think it's going to be successful is that it's going to be a lower overhead base, lower cost," he said. |
Asked then whether there really is a market for cameras that are not integrated into mobile phones, Mr Jones said: "The amateur photographer, you wouldn't see them walking down the street taking that perfect picture with a mobile phone." | Asked then whether there really is a market for cameras that are not integrated into mobile phones, Mr Jones said: "The amateur photographer, you wouldn't see them walking down the street taking that perfect picture with a mobile phone." |
But interest did not live up to his expectations. | But interest did not live up to his expectations. |
He forecasted sales of at least £80m in the first year under his control. But he failed to turn around the group's performance and the firm reported turnover of just £7.5m for the year. | |
The chain is the latest High Street brand to acknowledge tough trading conditions. | The chain is the latest High Street brand to acknowledge tough trading conditions. |
Last year, big chains such as Toys R Us, Maplin and Poundworld went bust and vanished altogether. | Last year, big chains such as Toys R Us, Maplin and Poundworld went bust and vanished altogether. |
Others such as Homebase, Mothercare, Carpetright and New Look did restructuring deals with their landlords, closing hundreds of shops between them. | Others such as Homebase, Mothercare, Carpetright and New Look did restructuring deals with their landlords, closing hundreds of shops between them. |
Who is Peter Jones? |