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Jessops owner plans to call in administrators | Jessops owner plans to call in administrators |
(32 minutes later) | |
Dragons Den star Peter Jones, who owns camera chain Jessops, plans to call in administrators to help secure the future of the 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. |
While revenues have increased most years since then, profits fell to less than £10,000 last year. | |
Now Mr Jones reportedly plans to seek a rescue deal for the firm's property arm, JR Prop Limited. | Now Mr Jones reportedly plans to seek a rescue deal for the firm's property arm, JR Prop Limited. |
The division has reported a steep increase in rental costs since 2017. | The division has reported a steep increase in rental costs since 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 and is often used as an opportunity to renegotiate rents. | 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 and is often used as an opportunity to renegotiate rents. |
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, which employs around 500 people, said Mr Jones still saw a future in the business and would not say how many of the chain's 46 stores were at risk of closure. | But sources close to Jessops, which employs around 500 people, said Mr Jones still saw a future in the business and would not say how many of the chain's 46 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. |
Asked then whether there really was a market for cameras that were 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 was a market for cameras that were 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 lacklustre turnover of £57.9m for the period. | 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 lacklustre turnover of £57.9m for the period. |
However, in 2016, the firm's revenues did reach £80.3m. The next year they surpassed £95m before dipping slightly amid tough trading conditions on the High Street. | |
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 collapsed and vanished altogether. | Last year, big chains such as Toys R Us, Maplin and Poundworld collapsed 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? | Who is Peter Jones? |