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Camera retailer Jessops enters administration (From York Press)
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Camera retailer Jessops enters administration
3:53pm Wednesday 9th January 2013 in Business news
By Julie Hayes, Business editor
FEARS for the future of camera retailer Jessops are mounting as the firm entered administration.
The chain, headquartered in Leicester, appointed Edward Williams, Rob Hunt and Matthew Hammond of PriceWaterhouseCoopers (PWC) as administrators, after suffering in recent years from online competition and the boom in camera phones, which has hit demand for digital cameras.
Mr Hunt said trading was hoped to continue while discussions continue, but he said store closures were "inevitable". He said staff would continue to be paid as normal if they attended work, but the business would not accept vouchers or returned goods from customers.
He said: “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.”
In a statement the administrators said the £236 million-turnover business's core marketplace had seen a significant decline in 2012 and forecasts for 2013 indicated the decline would continue.
Its position deteriorated in the run up to Christmas as a result of reducing confidence in UK retail.
Additional funding was made available to the company by its funders, but Jessops has not generated the profits it had planned which consequently had an impact on its funding needs. This was exacerbated by a credit squeeze in the supplier base, the statement said.
In July, Jessops moved its York store into new bigger premises in the former Game shop in Spurriergate. It relocated from its previous site in the White Swan Hotel building in Piccadilly, which is to be redeveloped.
York previously had three Jessops stores, including ones at Parliament Street and Monks Cross.
The business has 192 stores and employs about 2,000 people throughout the UK.
Jessops underwent a major overhaul and a swathe of store closures in 2007, when York had three stores, which all escaped the cut at the time but two have since closed.
The business also came close to collapse in 2009 before being rescued by its main lender HSBC in a controversial debt-for-equity swap that saw it taken off the stock market.
The bank took a 50 per cent stake in the business in return for writing off £34 million of loans.
There was speculation last year that suppliers such as Canon were considering injecting cash into Jessops to help prop the business up, but no deal materialised.
The group last year also suffered the loss of its chief executive Trevor Moore, who left to head up HMV, as well as its chairman David Adams.
Martyn Everett was then appointed as chairman and Neil Old was promoted to lead the business as chief operating officer.
The firm began life in 1935 when Frank Jessop opened his first shop in Leicester.
Comments(32)
Older Sometimes Wiser
says...
4:42pm Wed 9 Jan 13
roskoboskovic
says...
4:55pm Wed 9 Jan 13
notmyrealname
says...
5:32pm Wed 9 Jan 13
Jessops were very useful for trying out cameras and lenses for those of us who use SLR
Guy Fawkes
says...
5:46pm Wed 9 Jan 13
This, with a strong customer service help component (which was Jessops forte)
You must be joking. I went in there last summer to ask if they could process a roll of E6 reversal film. The response of the lady behind the counter was to ask me what E6 reversal film was. On a previous occasion, I asked if they had anything slower and finer grained than Tri-X. Again, the sales assistant did not know what I was talking about. And the last time I did actually get a film processed by Jessops (about a year ago), it hadn't been washed after fixing properly and came back with stains and blotches all over the negative.
Admittedly there aren't that many people who still choose to use film left, but you would expect a specialist photographic retailer to want to serve that market. The impression I get is that they were only interested in selling diigtal compacts and accessories at a staggering markup to people who either wanted the convenience of a high street location or simply didn't know that what they were after could be had for half the price online. Sadly, it seems that there aren't enough of them out there to keep Jessops in business.
baldiebiker
says...
6:09pm Wed 9 Jan 13
Guy Fawkes wrote:I was in W H Smiths, the person in front of me asked which pencil was softest, H or B the sales staff looked at each other then one replied yes HB is softest, I put them right.
This, with a strong customer service help component (which was Jessops forte)
You must be joking. I went in there last summer to ask if they could process a roll of E6 reversal film. The response of the lady behind the counter was to ask me what E6 reversal film was. On a previous occasion, I asked if they had anything slower and finer grained than Tri-X. Again, the sales assistant did not know what I was talking about. And the last time I did actually get a film processed by Jessops (about a year ago), it hadn't been washed after fixing properly and came back with stains and blotches all over the negative.
Admittedly there aren't that many people who still choose to use film left, but you would expect a specialist photographic retailer to want to serve that market. The impression I get is that they were only interested in selling diigtal compacts and accessories at a staggering markup to people who either wanted the convenience of a high street location or simply didn't know that what they were after could be had for half the price online. Sadly, it seems that there aren't enough of them out there to keep Jessops in business.
Even AndyD
says...
6:33pm Wed 9 Jan 13
notmyrealname wrote:I've used various SLRs for years and as much as I liked the 'Jessops Experience', the prices just weren't competitive in terms of what is on offer via the net.
Soon we will be down to Coffee shops, Phone shops, charity shops and clothes shops in York - and can we have more Costa signs up please the cardboard cup addicts need one on every street !!
Jessops were very useful for trying out cameras and lenses for those of us who use SLR
Sad, particularly for the existing staff, but it is clear that the web is changing the nature of retail and city-centres will need to adapt, as they have had to do time and again over the centuries.
Digeorge
says...
6:33pm Wed 9 Jan 13
W H Smiths,
They'll be on the list sometime!
Won't be a High Street but Jessops haven't really changed with the times.
Whose betting it will go for £1!
Paul Meoff
says...
6:36pm Wed 9 Jan 13
notmyrealname wrote:That's the problem - and most of us are probably guilty at some time or other. Shops are great for trying something out. People then go online and buy the same goods much cheaper.
Soon we will be down to Coffee shops, Phone shops, charity shops and clothes shops in York - and can we have more Costa signs up please the cardboard cup addicts need one on every street !!
Jessops were very useful for trying out cameras and lenses for those of us who use SLR
Oncebitten
says...
7:39pm Wed 9 Jan 13
Ultimately we will lose many high street stores.
twotonethomas
says...
8:41pm Wed 9 Jan 13
Thank you Cameron, Osbourne and all your ignorant supporters.
Even AndyD
says...
10:03pm Wed 9 Jan 13
Don't believe - you try phoning BT, or Virgin or whoever you internet provider is next time your broadband goes down. Even education is the same; targets, performance management, quotas - all the bottoms-on-seats stuff you see everywhere now. 'No I can't answer your call properly sir, or spend extra time giving you the help you need madam, it will jigger my target.
We get what we deserve. The world we live in today isn't designed to give us human welfare or contentment, it is designed for maximum shareholder profit. And that is being political - its the same whether Labour or the Tories are a fudged Coalition are in power. And its pretty unstoppable.
Even AndyD
says...
10:06pm Wed 9 Jan 13
Digeorge
says...
10:14pm Wed 9 Jan 13
Not workshy skivers - there are no jobs, hundreds of applicants per job.
When you have a benefit system that means you are actually better off on benefits, that's the problem but cutting benefits in a recession isn't a good idea. Exactly how are you supposed to get a job when there are none?
Guy Fawkes
says...
10:33pm Wed 9 Jan 13
Firms like Jessops provided quality service, as opposed to knock 'em out at the cheapest price and be as efficient as possible.
I'm sorry, but that has never been my experience with Jessops. They charged quality service prices, but delivered supermarket quality service. Every time I went in there it was clear that I, a self-taught, amateur and not very good photographer, knew more the products and services they sold than the people in the shop, who were allegedly professionals who earned their living selling photographic gear. Given the prices they charged and the specialist nature of their business, they should have been able to employ people with a higher and more focused (forgive the pun!) skill set than your average minimum wage shop worker.
I am willing to pay high street prices for a correspondingly higher level of service. For example, I'd always go to Barnitts rather than B & Q for DIY and electrical bits, because you get what you pay the higher prices for: people who know the stuff they're selling inside out and use that knowledge to make sure that you leave the shop as a satisfied customer. For example, I replaced the wiring to a phone extension after the cat bit through it recently. When I went to Barnitts and asked what size of cable clip I needed for telephone wire, the guy knew instantly that phone wire needs 4mm clips. I have never found that equivalent level of expertise from the staff in Jessops, and suspect that this is partly what did them in.
Magicman!
says...
3:50am Thu 10 Jan 13
Even AndyD
says...
8:31am Thu 10 Jan 13
Guy Fawkes wrote:Agree to disagree - opposite way round for me. I'm a decent photographer and absolutely hopeless at DIY. I found Jessops always helpful and knowledgeable and Barnitts made me feel like the complete novice I truly am!
Firms like Jessops provided quality service, as opposed to knock 'em out at the cheapest price and be as efficient as possible.
I'm sorry, but that has never been my experience with Jessops. They charged quality service prices, but delivered supermarket quality service. Every time I went in there it was clear that I, a self-taught, amateur and not very good photographer, knew more the products and services they sold than the people in the shop, who were allegedly professionals who earned their living selling photographic gear. Given the prices they charged and the specialist nature of their business, they should have been able to employ people with a higher and more focused (forgive the pun!) skill set than your average minimum wage shop worker.
I am willing to pay high street prices for a correspondingly higher level of service. For example, I'd always go to Barnitts rather than B & Q for DIY and electrical bits, because you get what you pay the higher prices for: people who know the stuff they're selling inside out and use that knowledge to make sure that you leave the shop as a satisfied customer. For example, I replaced the wiring to a phone extension after the cat bit through it recently. When I went to Barnitts and asked what size of cable clip I needed for telephone wire, the guy knew instantly that phone wire needs 4mm clips. I have never found that equivalent level of expertise from the staff in Jessops, and suspect that this is partly what did them in.
pedalling paul
says...
8:48am Thu 10 Jan 13
MrsHoney
says...
9:02am Thu 10 Jan 13
Candy Cupcake
says...
10:01am Thu 10 Jan 13
Kevin Turvey
says...
10:16am Thu 10 Jan 13
There will be other high street casualties yet to come before this depression is over some of them more suprising!
I will keep my thought of which companies they will be to myself.
‘pedalling paul says... 8:48am Thu 10 Jan 13
I predict a continuing rise in the number of high street cycle shops, as fuel prices continue to escalate.........’
Do you really!
Actually fuel has gone down slightly over the last few weeks.
However Paul never let facts get in the way of cycling propaganda!
Can you do me a favour?
If you are so sure of yourself set yourself up in business as a cycle shop and we shall see how many loyal customers you get due to your past, present and inevitable future inane ramblings on here.
I suspect you would go bankrupt very quickly!
RoastChicken
says...
11:03am Thu 10 Jan 13
Asda everytime, I know they don't offer as many specialist services, but great service, friendly staff, cheaper prices.
capt spaulding
says...
12:05pm Thu 10 Jan 13
pedalling paul wrote:I despair.
I predict a continuing rise in the number of high street cycle shops, as fuel prices continue to escalate.........
Chris82
says...
12:17pm Thu 10 Jan 13
notmyrealname wrote:I do love Costa coffee but you're right with everything.
Soon we will be down to Coffee shops, Phone shops, charity shops and clothes shops in York - and can we have more Costa signs up please the cardboard cup addicts need one on every street !!
Jessops were very useful for trying out cameras and lenses for those of us who use SLR
Chris82
says...
12:34pm Thu 10 Jan 13
MrsHoney wrote:True.
I must admit I hardly ever go into town any more and prefer to shop on Amazon. The main reason being that there aren't the independant shops around that there were many years ago. It's boring and the same as anywhere else. I did use those independant shops but obviously not enough people did and they closed. I feel sorry for people losing their jobs but as far as wanting a high street I'm happy for it to be taken over by leisure facilities. Perhaps if they lowered rates etc it would mean more independant shops and then I would start going into town again.
Buzz Light-year
says...
12:51pm Thu 10 Jan 13
Even AndyD wrote:In a nutshell this.
Another sad aspect of the modern world is that we've taken the 'competitive edge' to extremes. Firms like Jessops provided quality service, as opposed to knock 'em out at the cheapest price and be as efficient as possible. Don't believe - you try phoning BT, or Virgin or whoever you internet provider is next time your broadband goes down. Even education is the same; targets, performance management, quotas - all the bottoms-on-seats stuff you see everywhere now. 'No I can't answer your call properly sir, or spend extra time giving you the help you need madam, it will jigger my target. We get what we deserve. The world we live in today isn't designed to give us human welfare or contentment, it is designed for maximum shareholder profit. And that is being political - its the same whether Labour or the Tories are a fudged Coalition are in power. And its pretty unstoppable.
Older Sometimes Wiser
says...
1:46pm Thu 10 Jan 13
Guy Fawkes wrote:"a strong customer service help component (which was Jessops forte)"
This, with a strong customer service help component (which was Jessops forte)
You must be joking. I went in there last summer to ask if they could process a roll of E6 reversal film. The response of the lady behind the counter was to ask me what E6 reversal film was. On a previous occasion, I asked if they had anything slower and finer grained than Tri-X. Again, the sales assistant did not know what I was talking about. And the last time I did actually get a film processed by Jessops (about a year ago), it hadn't been washed after fixing properly and came back with stains and blotches all over the negative.
Admittedly there aren't that many people who still choose to use film left, but you would expect a specialist photographic retailer to want to serve that market. The impression I get is that they were only interested in selling diigtal compacts and accessories at a staggering markup to people who either wanted the convenience of a high street location or simply didn't know that what they were after could be had for half the price online. Sadly, it seems that there aren't enough of them out there to keep Jessops in business.
I apologise if I was wrong , my memory reverted to about ten years ago when I last used them.The current York Store has little to attract either in stock or prices.
I am sure however that their is a potential retail business opportunity for a store that concentrated on customer need/help rather than a quick sale.
Digeorge
says...
4:38pm Thu 10 Jan 13
Well Pedelling Paul I think I might agree with you there! Sir Wiggins and all! Let's see The Tour de Britain in Yorkshire next year... all out on their bikes!
Protography
says...
9:27pm Thu 10 Jan 13
Older Sometimes Wiser
says...
11:02pm Thu 10 Jan 13
Candy Cupcake wrote:Thank goodness there is at least someone who appreciates the need for service. Website shopping is fine for keen prices, but good help and advice is more necessary in an age of continual change. We are not all technical experts , and as one gets older the pace of change speeds up.Take for example the multiplicity of smart phone outlets, all competing madly on price .The quality of staff and help is poor when your needs are different to the majority social network addicts etc.
Unfortunately with cheap on line shopping and a recession customers are now looking for value for their money. In order for High Street Shops to survive they are going to have to start thinking about adding value to their products, things like seminars on how to use your new equipment would certainly tempt people into paying a little more.... I recently bought a telescope and would have paid more if we were shown how to get the best from it. Again diversifying in line with current trends..... Business Rates are also crippling as well travel costs and car parking fees that keep potential customers away from the City.... :(
Magicman!
says...
3:38am Fri 11 Jan 13
MrsHoney wrote:Very true. When it comes to something simple such as buying smart shoes (not trainers) there is very little choice now, especially in York.... you've got Barrats, Stead and Simpsons, Clarks, Pavers, and that's about it as most other shops are owned by either Barrats or Clarks.
I must admit I hardly ever go into town any more and prefer to shop on Amazon. The main reason being that there aren't the independant shops around that there were many years ago. It's boring and the same as anywhere else. I did use those independant shops but obviously not enough people did and they closed. I feel sorry for people losing their jobs but as far as wanting a high street I'm happy for it to be taken over by leisure facilities. Perhaps if they lowered rates etc it would mean more independant shops and then I would start going into town again.
But it's happening to everything, the bigger companies buy out the smaller ones and then the choice dissappears.
capt spaulding
says...
8:15am Fri 11 Jan 13
Older Sometimes Wiser says...
4:40pm Wed 9 Jan 13